Image Source: Yahoo
Yahoo become the latest tech company to join the tech layoffs as it prepares to lay off a significant 20% of its staff.
As part of the ongoing tech layoffs, Yahoo plans to let go of more than 2,000 of its 8,600 employees.
The long-running tech company is changing how its advertising department works. By the end of the year, over half of the people who work in that department will be let go.
The latest tech layoffs by Yahoo will affect almost 1,000 workers by the week’s end.
Yahoo is the latest tech company to join the wave of tech layoffs. Companies are having a hard time right now because of a drop in demand, high inflation, and rising interest rates.
Yahoo is owned by Apollo Global Management, a private equity firm which bought it for $5 billion in 2021. The company said the move would help it focus and invest more in its DSP, or demand-side platform, which is its most important ad business.
Changes in advertising
The tech layoffs are part of a larger effort by the company to make the advertising unit of Yahoo run more smoothly.
It comes at a time when many advertisers have cut back on their marketing budgets because of record-high inflation and the fact that nobody knows if there will be a recession.
The change shows that the company no longer wants to compete directly with Google and Facebook’s Meta for digital advertising dominance.
“The new division will be called Yahoo Advertising,” the Yahoo representative said.
In January, the US had the most layoffs in more than two years. This was because the technology industry, which used to be a reliable source of jobs, cut jobs at the second-fastest rate on record to prepare for a possible recession.
After the pandemic, companies like Google, Amazon, and Meta are trying to figure out how to cut costs without losing their competitive edge. This is because consumers and businesses are spending less because of high inflation and rising interest rates.
Mark Zuckerberg, the CEO of Meta, said that recent tech layoffs “the most difficult changes we’ve made in Meta’s history.” In October, when billionaire Elon Musk took over, Twitter cut about half of its staff.
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Because fewer people are buying personal computers than there used to be, Dell will lay off about 6,650 people.
About 5% of its employees worldwide are expected to lose their jobs.
Co-chief operating officer Jeff Clarke wrote in a memo that the company was facing tough market conditions and an uncertain future. The cost-cutting steps it had taken before needed to be more.
Dell, based in Round Rock, Texas, said it would lay off people similarly in 2020 after the pandemic.
A company representative said that the recent changes to departments and job cuts were a chance to make the company run more efficiently.
Zoom is doing a “reset” after the pandemic by cutting 15% of its staff.
Zoom, a company that became well-known when the Covid pandemic made more people work from home, is letting go of 1,300 employees.
The move will affect about 15% of its employees. Recently, the company has seen its user growth slow and its profits drop.
Eric Yuan, the company’s boss, said that he and other leaders would also take big pay cuts as the company works to ensure it can survive the slowdown.
It is making the same kinds of changes as many other tech companies.
Amazon and Salesforce are two other big companies that have cut many jobs and said that the business boom they had during the pandemic was over and thus the tech layoffs have become necessary.
Layoffs.fyi, a site that keeps track of these kinds of news, says that since the beginning of the year, more than 300 tech companies have let go of nearly 100,000 workers worldwide.
Zoom has had a hard time, especially as other tech companies have improved their video services.
In 2020, the company’s income more than tripled; in 2021, it grew by about 55%. But last year, the growth slowed to single-digit percentages, and the company’s profits fell sharply.
Since its peak in 2020, the company’s shares have fallen by more than 80%.
Mr. Yuan said that the cuts would affect every part of the organization and were meant to eliminate roles already being done by others and put the firm’s attention back on its top priorities.
Zoom said that the restructuring would cost between $50 million and $68 million and that affected employees would get 16 weeks of pay, health care coverage, and other help.
Mr. Yuan also said he would cut his salary by 98% in the next fiscal year and give up his bonus. He also said that the base salaries and bonuses of other executive leadership team members would drop by 20%.
At the beginning of this year, Amazon announced a significant 18,000 job cuts as part of its tech layoffs because of “the uncertain economy” and the fact that it had hired many people quickly during the pandemic.
Earlier in January, Alphabet said it would cut 12,000 jobs, and Microsoft said up to 10,000 jobs would be cut as part of the tech layoffs.
Spotify, a Swedish company that streams music online, said last week that it would lay off 6% of its roughly 10,000 employees because it needed to be more efficient.
The US computer chip maker Advanced Micro Devices (AMD) said on Tuesday that its net income for the last three months of 2022 dropped by 98%. This is another sign that the tech industry is slowing down.
The company also said that it expects sales for the current quarter to drop by as much as 10%.
But the numbers were better than many investors thought, and AMD’s stock went up after the news came out.
The second-largest maker of memory chips in the world, SK Hynix, had its worst quarterly loss ever on Wednesday.
For the last three months of 2022, the South Korean company reported a worse-than-expected loss of 1.7tn won ($1.4bn; £1.1bn) because sales dropped by 38%.
The company pointed to falling prices for computer chips and said, like other big tech companies, that it thinks the industry-wide downturn will worsen in the coming months before getting better later in the year.
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It happened after Samsung Electronics, a competitor, reported on Tuesday that it had made the least money in a quarter in eight years.