Information technology giant Yahoo is planning to lay off about 20% of its employees, it was reported on Friday. The decision comes as other Big Tech companies have similar redundancies.
The cuts involve Yahoo’s ad technology division and will affect more than half of the division, CEO Jim Lanzone confirmed to Axios. He declared the decision to be “very profitable for profit” and not motivated by financial concerns. “Movements aimed at simplifying and strengthening the good parts of the business, while removing the rest.” Lanzon added.
Yahoo was once a household name when it came to search engines and is considered one of the pioneers of the early internet era. However, the company now offers various online services such as email and news.
The CEO of media relations firm EZPR, Ed Zitron, discussed Big Tech’s recent layoffs on his blog in January. Zitron argues that IT companies “chose to blame thousands of people for a problem specifically created by their moderators… responsible for unrealistic projections, unrealistic spending and unrealistic hiring.”
The beginning of 2023 saw mass redundancies at many tech companies. That includes Yahoo rival Google, which has cut 12,000 jobs. Facebook’s parent company, Meta, is laying off 11,000 people, about 13% of the company’s total employees.
Elsewhere, Big Tech juggling Microsoft has announced the termination of 10,000 positions.
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