(Reuters) -Yahoo said on Thursday it plans to lay off more than 20% of its total workforce as part of a major restructuring of its ad tech division.
The cuts will impact nearly 50% of Yahoo's ad tech employees by the end of this year, including nearly 1,000 employees this week, the company said.
Yahoo, which is owned by private equity firm Apollo Global Management (NYSE:APO) since a $5 billion 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.
This comes as many advertisers have pared back their marketing budgets in response to record-high inflation rates and continued uncertainty about a recession.
A raft of U.S. companies from Goldman Sachs Group Inc (NYSE:GS) to Alphabet (NASDAQ:GOOGL) Inc have also laid off thousands this year to ride out a demand downturn wrought by high inflation and rising interest rates.
Axios first reported the news of the layoffs at Yahoo.