Yahoo, the once-dominant search engine, has undergone a major change in its ad tech strategy, which will result in the layoff of approximately 20% of its workforce. The decision is not based on financial difficulties like many other tech companies such as Twitter, Alphabet, Dell, and Disney, who have had to make cuts due to the pandemic and an uncertain economy. Instead, Yahoo is pivoting its strategy to stay competitive in the ever-evolving world of advertising.
Under its new parent company, Apollo Global Management, Yahoo has appointed former Tinder CEO, Jim Lanzone, as its new CEO. Lanzone has announced that the company will lay off over half of its ad tech employees, a total of more than 1,600 people. The reason for the layoff is a strategic move as Yahoo shifts away from competing with advertising giants like Google.
The layoffs will occur in two phases, with most employees losing their jobs on February 9, and the remaining 8% expected to receive their fate in the second half of 2023. Yahoo is replacing its ad platform, Gemini, with Taboola and will now focus on its demand-side platform, which will be known as Yahoo Advertising. The company aims to concentrate on its own properties such as Yahoo News and secure advertising deals with big Fortune 500 companies.
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In conclusion, Yahoo’s decision to pivot its ad tech strategy and lay off a significant portion of its workforce shows its commitment to staying relevant in the constantly evolving world of advertising. By focusing on its demand-side platform and properties such as Yahoo News, the company hopes to secure its place in the industry and remain profitable.