Yahoo is laying off more than 1,600 employees in a bid to restructure its ad tech unit.
According to Axios, the cuts impact 50 percent of the company’s ad tech employees. CEO Jim Lanzone told the publication the layoffs aren’t due to financial challenges but changes to the Yahoo for Business advertising unit.
The move will be “tremendously beneficial for the profitability of Yahoo overall,” Lanzone told Axios.
According to TechCrunch, staff were notified in an email Thursday that 1,000 employees will lose their job before the day ends. A further 600 people will be laid off in six months.
Several other tech companies have also recently laid off large chucks of their employee base, including Spotify and Microsoft. However, most of the layoffs stemmed from financial challenges, unlike Yahoo.
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Source: Axios and TechCrunch
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