Yahoo announced plans to lay off more than 20% of its overall personnel as part of a significant restructure of its ad tech group on Thursday.
The layoffs will affect almost half of Yahoo’s ad tech personnel by the end of the year, including over 1,000 employees this week, according to the firm.
Yahoo, which is owned by Apollo Global Management (APO.N) since a $5 billion takeover in 2021, noted that the change will allow the company to limit its attention and investment on its primary ad business known as DSP, or demand-side platform.
This comes at a time when many advertisers have reduced their marketing spending in reaction to record-high inflation rates and ongoing concerns about a recession.
A slew of American corporations, from Goldman Sachs Group Inc (GS.N) to Alphabet Inc (GOOGL.O), have cut off thousands of workers this year to weather a demand slowdown caused by high inflation and increasing interest rates.
The layoffs at Yahoo were first reported by Axios.