Yahoo to shrink advertising business and reduce employees by more than 20%

Yahoo plans to cut more than 20% of its workforce by the end of 2023. It is said that more than 50% of the Yahoo for Business division, which handles advertising, is subject to personnel reduction.

Exclusive: Yahoo to lay off more than 20% of staff as it shrinks ad biz

Yahoo layoffs: Company to cut 20% off staff by year-end
https://www.cnbc.com/2023/02/09/yahoo-will-lay-off-nearly-1000-employees-by-end-of-2023.html

Yahoo will lay off 20% of staff, or 1600 people | TechCrunch
https://techcrunch.com/2023/02/09/yahoo-will-lay-off-20-of-staff-or-1600-people/

According to Yahoo CEO Jim Lanzon, the plan is not due to financial problems, but to strategic changes to the unprofitable Yahoo for Business division. It has laid off 1,000 people this week alone, and expects to lay off another 600 by the end of the year.

Since Verizon, which owns AOL , acquired Yahoo in 2016, the news site Axios has aimed to compete with Google and Meta by leveraging the ad tech businesses that AOL and Yahoo have acquired in the past. I pointed out that it didn't go up. In 2021, Verizon sold its media business, including Yahoo, to Apollo Global Management for $5 billion (about 650 billion yen).

As CEO Lanzon said, Yahoo as a whole has no financial problems and will continue to run the advertising business as Yahoo. The native advertising platform 'Gemini' will be closed, and instead, the name of the demand side platform will be changed to 'Yahoo Advertising' by utilizing the partnership with ad tech giant Taboola, and native advertising will be sold with original content. It is said that it is planned.