Acquired in 2021 and in the throes of a restructuring of its advertising division, Yahoo will seriously cut its workforce by separating 20% of its staff.
Silicon Valley is not done with job cuts. While the giants Google, Amazon, Microsoft and others, even Disney, announce their layoff plans in turn, it’s Yahoo’s turn to unveil its own. The famous internet portal delivered the bad news on Thursday by formalizing the dismissal of 1,000 employees, starting this week.
Faced with shrinking advertiser budgets, Yahoo takes the lead
Yahoo, which remains very powerful by still being one of the 15 most visited platforms in the world, according to figures from Similarweb, has put its plan to restructure its advertising division into action. Initially, the company will quickly dismiss 1,000 employees before separating, by the end of the year, 50% of the division’s forces.
These layoffs should lead Yahoo to reduce its total workforce by more than 20% (some media mention a 20% payroll reduction), and thus accelerate the creation of a new division to better absorb the reduction in the marketing budget of many advertisers, in particular.
This should bring together the sales teams of Yahoo Sports, Yahoo Finance and Yahoo News. ” We believe these changes will simplify and strengthen our advertising businesses over the long term while enabling Yahoo to deliver more value to our customers and partners. “, Explains a representative of the company, bought in 2021 by the investment fund Apollo Global.
Mass job cuts in tech
Job cuts are accumulating at breakneck speed in the new technologies sector, with 160,000 layoffs announced for 2022 alone. Inflation and the global economic slowdown caused by the war in Ukraine are the arguments put forward by companies to justify mass job cuts.
The “GAFAM” are not, you will understand, not the only ones to degrease. Other big names in new technologies have given a little more force still to this worrying wave of dismissals, like Dell, on the point of separating more than 6,500 employees, because of the fall in PC sales. Same thing for HP and IBM. And the list will probably grow quickly.
Source : Reuters
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