Yahoo

Yahoo employees hit the exits as new owner Apollo begins to restructure the company

Jim Lanzone, CEO of Yahoo.
  • Yahoo implemented a restructuring, resulting in a number of layoffs in sales and partnerships.
  • A Yahoo spokesperson called the decisions “routine” regarding team structure.
  • The restructuring is one of the first major steps taken by new CEO Jim Lanzone and Yahoo’s new owners Apollo.

A number of staff have left Yahoo in recent weeks as part of a corporate restructuring, one of the first major changes under the company’s new owner, private equity firm Apollo Global Management. .

The affected roles cover sales, partnerships and some global country managers, according to sources familiar with the matter and LinkedIn posts of Yahoo employees announcing their departures this week.

About 2% of the commercial division was affected, according to a person with direct knowledge of the matter.

“We are always looking for ways to make Yahoo a more efficient company, which includes routine decisions about team structure that are made to support an overall healthier business for our people and our culture,” said one. Yahoo spokesperson.

The move comes after Yahoo and AOL – then known as Verizon Media – were sold by the telecommunications giant to Apollo for $5 billion in September last year. Tinder CEO Jim Lanzone was named to lead the company, renamed simply “Yahoo,” as chief executive later that month.

When the deal was first announced earlier in 2021, Verizon Media employees had expressed concerns about potential layoffs under the new owner — especially given the history of private equity firms pressing media companies to get margins. Indeed, Apollo’s financial backing of Gannett has caused unease among Verizon Media insiders over deep cost cuts, Insider reported last May.

In a September memo to Yahoo staff, obtained by Insider, Lanzone wrote that he “didn’t come to create change for the sake of it, but rather to work with all of you to continue your momentum as a new yahoo”. Apollo had also said that it planned “to invest in the growth of the whole company”.

Lanzone is tasked with turning around a company that never lived up to the ambitions Verizon had set for it. Verizon spent a total of $9 billion to acquire AOL and Yahoo in hopes of tackling the digital advertising duopoly of Google and Facebook. He ended up writing off his media investments of nearly $5 billion, having failed to capture a significant share of the digital advertising market – despite owning assets such as the Yahoo homepage. com and Yahoo Mail. Large rounds of layoffs have been common at Yahoo and AOL over the years as the companies sought to align the size of their businesses with their performance.

Yahoo executives said Apollo’s plan to turn the company around involves focusing on commerce, content and sports betting. The former Verizon Media had already returned to revenue growth before the Apollo acquisition.

The author of this story worked as a freelancer for Verizon Media in 2019.