US telecommunications behemoth Verizon has announced that it has reduced its workforce in its media division in an effort to realign and restructure its overall business strategy.
Hundreds of jobs are expected to be lost from the operators’ media unit which includes former internet giants such as Yahoo and AOL. A source close to Verizon said the amount of jobs lost amounts to 7% of the overall staff.
Verizon’s media unit has been a successful extension to its comprehensive ICT portfolio - popular news sites such as the Huffington Post and TechCrunch generate large visitors to their websites on a daily basis.
Whilst the number of jobs being lost remains speculative, the reputable Wall Street Journal has reported that around 800 positions will be lost following the decision by Verizon to overhaul its business strategy.
The unit's chief executive Guru Gowrappan, who took over in October 2018, made the changes after a strategic review which determined the group would prioritize "Yahoo's member-centric ecosystem" along with ad technology and video products.
Responding to AFP, Verizon Media said in a statement: "Our goal is to create the best experiences for our consumers and the best platforms for our customers. Today marks a strategic step toward better execution of our plans for growth and innovation into the future."
Verizon, which also operates one of the largest US telecom networks, last year wrote down the value of its Yahoo acquisition by some $4.6 billion.