- Yahoo announced plans to lay off more than 20% of its ad tech.
- This comes at a time when advertisers have reduced their marketing budgets due to high inflation and interest rates.
- Yahoo has been owned by Apollo Global Management since a $5 billion takeover in 2021.
Yahoo announced plans to lay off more than 20% of its overall personnel as part of a major restructure of its ad tech group on Thursday.
The layoffs will affect nearly half of Yahoo’s ad tech personnel by the end of the year, including nearly 1,000 employees this week, according to the company.
Yahoo, which has been owned by Apollo Global Management since a $5 billion takeover in 2021, stated that the decision will allow the company to limit its focus and investment on its primary ad division, known as DSP, or demand-side platform.
This comes at a time when many advertisers have reduced their marketing budgets in reaction to record-high inflation rates and ongoing concerns about a recession.
A slew of American companies, from Goldman Sachs Group Inc. to Alphabet Inc. has laid off thousands of workers this year to weather a demand slump caused by high inflation and increasing interest rates.
The layoffs at Yahoo were first reported by Axios.
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