Amid mounting layoffs in technology companies, Yahoo announced on Thursday that it will lay off 20% of its workforce by the end of this year. 1000 employees will go by the end of this week. The layoffs will happen in the ad tech division as part of a restructuring of the company’s ads team, Yahoo for Business. The team’s workforce will be cut to 50% by the end of 2023.

Yahoo’s spokesperson said that the company’s ads business has not been profitable and that their new division Yahoo Advertising will focus on their “demand-side platform”, and products such as Yahoo Finance, Yahoo News and Yahoo Sports. Yahoo will also close its supply-side platform and move their advertising work to Taboola with whom they signed a 30-year partnership. Yahoo believes these changes will strengthen their advertising business and “deliver better value to our customers and partners.”

The news comes at a time when tech companies like Microsoft and Google are heavily chasing the AI-powered search engines and chatbots. On the other hand, impending recession and cost-cutting measures are pushing several tech and media companies to let go of their employees. Ironically, Microsoft-led GitHub announced yesterday that they would lay off 10% of their workforce and cut-down office space. This announcement continues with Microsoft’s layoff of 10,000 employees who contribute to 5% of their global workforce. Google will also cut short approximately 6%, that is 12000 jobs. 

On Wednesday, Bob Iger, CEO of Disney, announced that 7000 employees would be laid off by targeting a total of $5.5 billion in cost savings. This accounts for 3% of their workforce. Some of the other big tech layoffs announcements that happened in the last few weeks include, Zoom, which is letting go of 15% of their employees or 1300 employees, eBay laying off 4% of their workforce (500 employees), Paypal letting go of 7% of the workforce (2000 employees), SAP with 2.5% of the workforce or 2800 employees, IBM 1.5% that is 3900 employees, and Dell to cut short 6000 employees which is 5% of their workforce. 

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