An American multinational technology company, Yahoo is planning to sack more than 20% of its total workforce by end of the year. This is part of a major restructuring of its ad tech division.
The Job cuts will impact 1,000 employees this week. However, the company is planning to layoff 50% of Yahoo’s ad tech employees by the end of this year.
“The company plans to cut nearly 50 per cent of the division this year, including nearly 1,000 employees this week,” the spokesperson said in a statement.
“These decisions are never easy, but we believe these changes will simplify and strengthen our advertising business for the long run, while enabling Yahoo to deliver better value to our customers and partners,” the spokesperson said.
Yahoo CEO Jim Lanzone stated that the layoffs are not the result of financial challenges but rather strategic changes. According to reports, the company is the planning of job cuts as many companies have restructured the marketing budget due to record-high inflation rates and concerns about a recession.
Yahoo also joined the layoff spree by top tech companies. The major companies that laid off employees include Amazon, Google, Microsoft, Byju’s, Wipro, and Salesforce laid off a maximum number of workers globally.
Additionally, Disney will layoff 7,000 employees to make business more profitable. The layoffs represent an estimated 3.6% of the company’s global workforce. Recently, Zoom also announced to sack 1300 employees or roughly 15 percent of the company’s workforce. Additionally, the Zoom CEO’s salary is to be reduced by 98%.
Earlier in November, Amazon announced that will be layoff 10,000 employees. However, the company further added 8,000 employees, and the total layoffs were announced as 18,000 employees.
On the other hand, The IT major Google sacked roughly 12,000 staff. Microsoft and Salesforce laid off 10,000 and 7,000, respectively.