Due to a downturn in demand, high inflation, and an increase in interest rates, Yahoo announced the layoff which will affect about 1,000 laborers.

According to Yahoo’s spokesperson, their decisions were hardly considered for a long time, but their decisions will change their advertising business to be optimized in the long run. Moreover, they added that the changes would let the firm focus and get investments in its advertising business.

Their decisions are mainly caused by the reduction of advertisers’ marketing budget caused by the slowdown of economic growth.

These decisions are interpreted as the signal, which displays the intention of the company to avoid direct competition against the advertisement programs of Google and Facebook’s Meta.

Moreover, Yahoo said in a statement that they will address their support for their top global customers and re-launch dedicated ad sales teams for Yahoo’s owned and controlled properties in priority, which includes Yahoo Finance, Yahoo News, and more.

In the US, these layoffs peaked in January. To prepare for a recession, many large companies made job cuts, particularly in the technology sector. Businesses like Google, Amazon, and Meta are currently lowering their entire budgets to save costs and stay competitive. These behaviors are brought on by consumers' and businesses' declining expenditures due to post-pandemic high inflation and rising loan rates.

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