Yahoo plans to lay off more than 20% of its total 8,600 workforce as part of a major restructuring.
The veteran tech company is reorganising its advertising unit.
This will lead to lose of more than half of the department by the end of the year.
Nearly 1,000 employees will be affected by the cuts by the end of the year.
Yahoo is the latest tech company to announce job cuts as the industry struggleswith high inflation and drop in demand.
“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,” a spokesperson told the BBC.
The move would allow the company to concentrate more on its flagship ad business, demand-side platform.
The layoffs are part of a broader effort by the company to streamline operations in Yahoo’s advertising unit.
It comes as a result of advertisers cutting marketing budgets in response to record-high inflation rates and economic crisis.
The re-focus indicates the company’s intention to stop competing directly for digital advertising dominance with Google and Facebook’s Meta.
According to yahoo spokesman the new division will simply be called Yahoo Advertising.
