In recent months, technology companies have been trying to cut costs through layoffs. These decisions are mainly related to the significant decline in sales and profits. Yahoo, unfortunately, is no exception. In an announcement last week, Yahoo said that it would proceed with layoffs that will affect 20% of its global workforce. This means that more than 1,600 people will leave the company in the coming months.
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Yahoo’s layoffs have already begun. The company laid off about 1,000 employees last week (about 12% of its global workforce). It will lay off another 600 in the second half of the year. The cuts will hit advertising business . Yahoo CEO Jim Lanzonetold Axios that the advertising division will lose more than 50% of its staff by the end of this year. In addition, the company will shut down some parts of its advertising business, including SSP and Gemini.
Lanzone clarified that Yahoo's decision to reduce its workforce is not due to the current economic crisis, but rather represents a decisive step towards achieving profitability in its advertising operations.
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Unfortunately, Yahoo failed to meet expectations and lost money on its advertising business. This failure now seems to be leading to mass layoffs. Yahoo’s CEO emphasized that a lot of resources were going into this division, but it wasn’t turning a profit. The CEO also added that the changes will be “extremely beneficial” for the company’s profitability. The company will be able to invest more in business areas that are already profitable.
Yahoo is not the first tech company to announce mass layoffs, and it likely won't be the last. In recent months, dozens of other well-known companies have laid off more than 100,000 employees worldwide. Meta, Microsoft, Amazon, Alphabet, Twitter, Disney, IBM , and Dell are just a few of the companies that have laid off or announced plans to lay off thousands of employees. We may see more layoffs in the coming months if current economic conditions don't improve.
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Layoffs are not an easy task for companies. However, sometimes they are forced to make such decisions in order to cope with financial difficulties and other problems they may be facing. In the past two to three years and especially since the pandemic began, people have started doing everything online. This shift to online services, online shopping, etc., has made companies sharply increase their staff to cope with the increased demand. Now, however, the conditions have changed and companies have started laying off employees en masse.
Source: www.androidheadlines.com
