SAN FRANCISCO: Yahoo is laying off 20% of its workforce, or 1,600 employees, that will impact half of the company's ad tech business.

In an interview with Axios, Yahoo CEO Jim Lanzone said that these adjustments will be "tremendously good for the profitability of Yahoo overall" 

The corporation will be able to "go on attack" and spend more in successful businesses as a result of the layoffs.
According to report, 12% of the workforce (around 1,000 employees) would be laid off on Friday. Another 8% (600 people) will be let go during the next six months, the company added.

Lanzone said, the total number of layoffs would represent more than 50% of the existing personnel in the ad tech unit and more than 20% of the current staff at Yahoo.

The Report read, "Yahoo will close down a division of its advertising business called its supply-side platform, or SSP, which aids digital publishers in selling automated ads against their content."

The company will also shut down its native advertising platform called Gemini.  It will leverage its newly-framed partnership with ad tech giant Taboola to sell native advertising.

A spokeswoman for Yahoo said in a statement that over a number of years, "the aim of our ads company was to compete in the ad tech sector by offering a 'single stack' comprising of our Demand Side Platform (DSP), Supply Side Platform (SSP), and Native platforms."

The statement said, "Despite many years of work and investment, this strategy struggled to meet up to our high standards throughout the entire stack.

Yahoo has joined a growing list of tech businesses that have fired thousands of workers due to macroeconomic conditions around the world.

Disney to cut 7000 jobs as subscriber base dips