Yahoo intends to reduce its workforce by more than 20 percent this year, a move seen as part of a broader wave of downsizing across the tech sector. The company is trimming the headcount after announcing a first wave of about 1,000 job cuts in the current week, aligning with similar steps taken by many peers in the industry.
The restructuring follows Yahoo’s period of reorganization in the wake of its acquisition history. The internet portal, which was acquired by the Apollo mutual fund in 2021, is reshaping its digital advertising operations as part of a broader effort to compete with giants like Google and Meta while seeking profitability in newer areas.
Axios reported that the layoffs may affect more than 1,600 employees, representing more than half of the workforce within Yahoo’s digital advertising unit. This larger figure underscores the scale of the transition as the company realigns priorities and investments across its business lines.
Yahoo chief executive officer Jim Lanzone told U.S. media that the cuts are driven not by immediate financial distress but by a strategic shift intended to lift profits and free capital for growth in other segments. He framed the moves as a deliberate step to redirect resources toward areas with greater long-term potential.
About a thousand employees, roughly 12 percent of the overall workforce, will depart immediately, while the remainder will exit gradually through the latter half of the year. The staged approach reflects a careful transition designed to minimize disruption and preserve business continuity as the company pivots toward its new strategy.
The wave of layoffs arrives as Yahoo joins a wave of tech companies announcing sizable staff reductions in recent months, a trend that intensified after the company had experienced rapid growth during the pandemic era. The broader industry shift continues to redefine how digital publishers and platforms allocate resources and pursue profitability in a crowded, competitive space.
Historically a prominent name on the early internet, Yahoo was first acquired by the telecommunications group Verizon in 2021, which subsequently sold 90 percent of the company to the Apollo fund for approximately $5 billion. This chapter marks Yahoo’s ongoing evolution as it refines its portfolio and focuses on core strengths and new investment areas. [citation to Axios]