Yahoo to slash 20% of its workforce as part of a major restructuring

Yahoo plans to lay off more than 20% of its total 8,600 workforce as part of a major restructuring.

The veteran tech company is reorganising its advertising unit, which will lose more than half of the department by the end of the year.

Nearly 1,000 employees will be affected by the cuts by the end of the week.

Yahoo is the latest tech firm to announce job losses as firms struggle with a downturn in demand, high inflation and rising interest rates.

"These decisions are never easy, but we believe these changes will simplify and strengthen our advertising business for the long run, while enabling Yahoo to deliver better value to our customers and partners," a spokesperson told the BBC.

Yahoo, which has been owned by private equity firm Apollo Global Management since a $5bn buyout in 2021, added that the move would enable the company to narrow its focus and investment on its flagship ad business called DSP, or demand-side platform.