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Yahoo is set to let go of 20% of its staff as the web services major eyes a leaner advertising business, Axios reported.
The cuts will mostly affect the firm’s adtech employees, with the cut reducing the unit’s total headcount by over 50%, which translates to more than 1,600 staff members.
In an interview with Axios, Yahoo CEO Jim Lanzone said the layoffs were part of a wider plan to boost the profitability of the company’s advertising business. He added that the move will be “tremendously beneficial for the profitability of Yahoo overall.”
The initial wave of layoffs, which saw 1,000 people leave the company, was done on Thursday. The remaining will occur in the second half of 2023.
In addition to the staff cuts, Yahoo will shut down the supply-side platform unit of its ads business, which helps publishers sell automated advertising. It will also shutter Gemini, its native ads platform, and instead leverage its partnership with Taboola.
Moving forward, Yahoo will focus on the demand-side platform unit of its ads business, which helps clients buy ads across multiple websites. The company plans to make new hires for the segment to build out a more robust ad sales team.
See also: Tracking layoffs across Asia’s startup ecosystem (Updated)
Editing by Lorenzo Kyle Subido
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