US web services company Yahoo plans to lay off more than 20% of its workforce by the end of this year as part of a restructuring of its advertising technology unit.
Yahoo CEO Jim Lanzone pointed out that the layoffs are not the result of financial difficulties, but rather of strategic changes made to the advertising unit, which has not been profitable.
The layoffs will affect more than 1,600 employees, more than half of this unit. Mr. Lanzone estimated that the changes made would be “extremely beneficial for the profitability” of Yahoo, allowing it to invest more in other more profitable products.
Yahoo’s announcement comes as many technology companies have made layoffs due to financial difficulties, including Amazon, Meta and Twitter.