Yahoo announced on Thursday that it would cut 20% of its workforce by the end of the year.
Axios first reported the news. The cuts to the company's total workforce are expected to impact about 1,600 people.
Yahoo CEO Jim Lanzone said the cuts will be“tremendously beneficial for the profitability of Yahoo overall."
Axios reported that Yahoo is profitable, and generates about $8 billion a year in revenue.
A growing number of media and tech companies have been taking measures to cut costs as digital advertiser spending becomes more uncertain around the globe.
A Yahoo spokesperson told CNN, “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."
