Cost cutting in the tech industry is code for a whole lot of people looking for work. Yahoo is the latest company that is shedding payroll in a big way, as they plan to let go 20% of their staff by the end of the year.
The private equity firm Apollo Global Management acquired the company in 2021. They currently own 90% of the company, and they want to see a better return on their investment. Over 1,600 people will be let go in this latest round of cuts as leaders hope to streamline operations in the advertising unit.
Internal advertising jobs are the ones in danger. That’s where 50% of the cuts will occur as Yahoo will focus sales efforts on Taboola, a digital advertising company Yahoo has partnered with.
Here’s a quote from a Yahoo spokesperson.
“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.”
Disney is another company making headlines for their plan to cut 7,000 jobs to trim costs by $5.5 billion. The company will restructure its organization into three core business segments: ESPN, Disney Entertainment, and Disney Parks.
It’s one of the first big moves by returning CEO Bob Iger, who said this during their earnings call.
“We will be reducing our workforce by approximately 7,000 jobs. While this is necessary to address the challenges we’re facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.”
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