According to the report, the layoffs are part of a reorganization of the company’s advertising technology division – a move that is being implemented as a direct result of the huge deal that Yahoo signed with the Israeli advertising giant on the Tabula network in recent months. The deal made Tabula the exclusive seller of ads on Yahoo’s sites for the next three decades – completely out of work for half of Yahoo’s advertising division employees who had been doing it until now.
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Yahoo’s CEO, Jim Lanzon, told Axius that the layoffs are not due to financial difficulties, but to “strategic changes” – as mentioned, that huge deal with Tabula. He added that the changes “will be tremendously beneficial to Yahoo’s overall profitability.” Yahoo is profitable Already today, with annual revenues of approximately 8 billion dollars, but it is expected that the deal with Tabula will raise this amount in several billions in the next few years.