Yahoo will start to lay off 1,000 employees from this week.
The restructuring is mainly targeted at its advertising tech division, which will be reduced by 50 percent.
CEO Jim Lanzone stressed the job losses are not due to financial challenges but to bolster its already faltering ad tech unit.
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He said: “These changes announced today are entirely within the context of creating a better business plan for that division going forward.
“The company has taken many bites of the apple here in trying to make it work over the years, but as a standalone company we had to take a very honest view in how we apply our resources.”
Digital advertising companies are having to try to deal with customers who are concerned about economic uncertainty.
Yahoo’s reorganization will add a new division called Yahoo Advertising.
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It will concentrate on ad sales teams on its properties, including Yahoo Finance, Yahoo News, and Yahoo Sports.
Mr. Lanzone said the firm is “still hiring aggressively”, and added laid-off employees will be considered for internal transfers.
Yahoo is the latest tech company to announce job cuts, joining Alphabet, Amazon, IBM, Lyft, Meta, and Microsoft.
Within just one month, tech firms have axed more than 60,000 jobs, a contrast to the hiring spree that accelerated during the pandemic.
Source: Fortune
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