Shirking Digital Ad Revenues Forces Yahoo to Cut 20% of Company by End of 2023
A massive dip in digital advertising spend in 2022 has finally caught up to Yahoo. The legacy tech company which paved the way for countless other in the digital advertising space announced it would cut 1,000 workers in February. By the years end, the company said it will end uo cutting 20% of its total workforce and more than half of its ad tech team, according to Axios
“These changes announced today are entirely within the context of creating a better business plan for that division going forward,” Yahoo CEO Jim Lanzone said in a recent interview “The company has taken many bites of the apple here in trying to make it work over the years, but as a standalone company we had to take a very honest view in how we apply our resources.”
The cuts will reportedly bring about an end to the “supply-side platform” aspect of Yahoo’s ad business, which helped advertisers sell ads against their content. Yahoo’s native advertising platform, called Gemini, will also reportedly be put to rest.
Once a major competitor in the battle for digital advertising market share, Yahoo in recent years has largely been cut out but the Google, Meta, Amazon advertising tripoly, In 2021, those three companies reportedly accounted for nearly 87% of U.S. digital advertising revues, according to an Insider Intelligence forecast.
