Before Yahoo, several multinational tech giants like Alphabet, Microsoft, Meta, and Twitter also trimmed their workforce.
American multinational tech giant Yahoo Inc is trimming its workforce by 20%, impacting over 1,600 employees. The restructuring move will impact more than half of Yahoo’s ad tech employees, Axios first reported.
Yahoo chief Jim Lanzone told Axios in an interview that the layoffs are not due to the global economic slowdown, but rather, they are strategic changes to the company’s unprofitable Yahoo for Business advertising unit.
“The moves are meant to simplify and strengthen the good parts of the business, while sunsetting the rest,” Lanzone told Axios.
According to another report by TechCrunch, which is owned by Yahoo, employees of the company were informed that 12% of the workforce, or around 1,000 employees, will be eliminated before Thursday’s end. The rest 8% of the workforce, or 600 employees, will be asked to go in six months.
In the past, several multinational tech giants like Alphabet, Microsoft, Meta, and Twitter have also trimmed their workforce as they brace for a global economic slowdown. In a nutshell, a setback in consumer spending due to high inflation and the threat of a looming recession this year has pushed corporates to keep a lid on their spending.
This week, video calling application Zoom announced laying off around 1,300 employees, or approximately 15% of its total workforce. The company’s chief Eric S. Yuan blogged about the decision and added that he will take a 98% reduction in his salary in the coming fiscal year.