The cuts will affect nearly 50% of Yahoo’s ad tech employees by the end of this year. Almost 1,000 employees will be laid off by the end of this week alone.
Yahoo has been owned by private equity firm Apollo Global Management since a $5 billion buyout in 2021. Sources at the company said the move will narrow the focus and investment in the company’s flagship business, an up-and-coming advertising business called DSP.
The cuts are predominantly due to many advertisers cutting their marketing budgets in response to record high inflation rates and ongoing recession uncertainty.
A number of U.S. companies, from Goldman Sachs to Alphabet, have also laid off thousands of employees this year to weather a slump in demand caused by high inflation and rising interest rates.
