New Delhi: IT major Yahoo has said it will layoff 20 percent of the total workforce as part of a major restructuring of its ad tech unit, media reports said.
The cuts will impact more than 50 percent of Yahoo's ad tech employees — more than 1,600 people, executives told Axios.
In an interview, Yahoo CEO Jim Lanzone stressed that the layoffs are not attributable to financial challenges, but rather, strategic changes to the company's Yahoo for Business advertising unit, which is not profitable, reports Axios.
Roughly 1,000 positions will be eliminated Thursday, representing 12% of the total planned cuts at Yahoo. The remaining 8% or more of cuts will occur in the second half of this year.
Lanzone said he couldn't provide the exact number of future cuts, but confirmed that the total number of layoffs would amount to more than 50% of the ad tech unit's current staff, and more than 20% of Yahoo's current staff.