Syed Imran Haider 
Yahoo to join the list of tech companies who have downsized their staff as a part of the restructuring. The veteran tech company has reportedly planned to restructure the organization and lay off more than 20% of its 8,600 employees as a part of the plan.
Yahoo has begun reorganizing its advertising department, which will cut more than half of the unit by the end of 2023. It will make the cuts in the phases, and according to the first phase of downsizing will affect about 1,000 members of staff by the weekend.
Many tech firms have downsized their employees because of high inflation, increased interest rates, or restructuring of the businesses. Yahoo has become the latest tech company to reduce the workforce as it confirms the struggle as other similar firms do.
According to a representative of Yahoo, no company finds these types of decisions easy so does Yahoo. The tech firm believes in the long-term effects of such changes as they aim to simplify and strengthen its advertising business. Also, the layoff decision will enable Yahoo to provide its partners and customers with better value.
Owned by Apollo Global Management – a private equity firm, Yahoo thinks that the change would help the tech firm narrow its focus and investment on DSP – the flagship advertising business.
Changes Designed for Advertising Unit
Yahoo intends to streamline operations in its advertising department. The downsizings are a part of the company’s broader efforts to meet the target. The veteran tech company observed many advertising marketers paring back their budget, responding to record-high inflation rates and constant uncertainty about a downturn.
Tech analysts consider the re-focus signals as Yahoo’s intentions to hamper the competition directly against Google and Meta – the parent company of Facebook for digital advertising supremacy. According to a Yahoo representative, the new division will come to know Yahoo advertising.
The company will prioritize support for its top worldwide customers and launch dedicated and effective sales teams toward the properties owned and operated by Yahoo in its redoubling efforts for DSP. They could include Yahoo News, Yahoo Sports, and Yahoo Finance.
The technology industry is a reliable source of employment in the United States. The downsizing in the country touched a higher number in two years by January 2023. Tech firms’ employment cuts at the world’s second-highest pace for a possible recession.
Big Tech Firm’s Downsizings
Mark Zuckerberg, the Chief Executive of Meta, says the most difficult changes the company has made in its history are the recent job cuts. Twitter also reduced half of its workforce after Elon Musk’s takeover in October 2022. Before Yahoo, Zoom was the last tech firm to announce 15% of job cuts.
Amazon, Google, Meta, and Zoom have grappled with balanced cost-cutting measures while remaining competitive as corporate and consumers face high inflation, surging interest rates, and other financial troubles after the pandemic of COVID-19.
The laid-off Amazon employees revealed the first sign of downsizing, whereas Dave Limp – the devices boss of the company, admitted that it pained him, but the company would have to lose competent Amazonians from the department.
While online advertisers are the primary money-making source for numerous tech companies, dark clouds have already started gathering for ad businesses. Companies face increasing opposition to intrusive ad practices, such as Apple made it complicated for others to track your online activity and sell that information to promoters. The troubled financial economy also caused many tech companies to slash their online advertisement budget. The surging interest rates have played a significant part in hitting these companies.
