The entrance to Yahoo’s San Francisco office building is seen on Fifth Street on Thursday, December 15, 2016, in San Francisco, California.
San Francisco Chronicle / Hearst Ann / San Francisco Chronicle Through the Gate
Longtime Bay Area tech conglomerate Yahoo is cutting its workforce by 20% by the end of the year — including nearly 1,000 employees this week alone — according to a Thursday report from Axios.
The company, which is owned by private-equity giant Apollo Global Management, will reportedly spin off parts of its ad tech business, representing the first 1,000 employee cuts. According to Axios, the last 8% of layoffs will happen by the end of 2023.
Yahoo has tried for years to compete with search and ad tech giants like Google and Meta with its own integrated advertising platform, but seems to be losing ground with reported changes. The company plans to retain its demand-side platform, which helps advertisers buy ads, but spin off its ad sales operations. Yahoo will now partner with Taboola to sell ads on its properties. More than 50% of the current employees of the Yahoo advertising technology unit are expected to lose their jobs.
CEO Jim Lanzon told Axios, “These moves are meant to simplify and consolidate the good parts of the business, while sunsetting the rest.”
A spokeswoman for the company did not immediately respond to SFGATE’s request for comment and details on the employee severance package. It is also unclear how many affected employees are located in the Bay Area.
Yahoo sold its Sunnyvale headquarters to Google in 2019 and another large chunk of space in San Jose to ByteDance, the parent company of TikTok, but still maintains a large office in SOMA.
Stephen Council is Tech Reporter at SFGATE. He has covered technology and business for The Information, The Wall Street Journal, CNBC and CalmMatters, where his reporting won a San Francisco Press Club award. Signal: 628-204-5452 Email: [email protected]
Source: www.bing.com
