Yahoo Layoffs: Tech Firm Fires 25% Of Its Cybersecurity Team Under New CTO

Yahoo Layoffs: Yahoo has confirmed the layoffs, including the dissolution of its red team, stating that the changes are part of the company's ongoing security program evolution

Yahoo Layoffs: Last year, Yahoo also laid off more than 1,600 employees, roughly 20 per cent of its total workforce

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Yahoo Layoffs: Yahoo has reportedly laid off approximately 25 per cent of its cybersecurity team, known as "The Paranoids," over the past year. The total number of departures, including layoffs and attrition, ranges from 40 to 50 individuals out of the 200-person cybersecurity team since the beginning of 2024, according to a report from TechCrunch citing multiple current and former Yahoo employees.

The cybersecurity team isn’t the only group affected by the layoffs. Valeri Liborski, Yahoo's newly appointed Chief Technology Officer in September, informed staff of broader changes across the technology division, including enterprise productivity and core services. In an email obtained by TechCrunch, Liborski expressed the difficulty of the decision, stating, "This was a very difficult decision and one I have not taken lightly."

The most significant cut came with the elimination of The Paranoids' red team, which was responsible for conducting cyberattack simulations to identify vulnerabilities before external hackers could exploit them. This move marks the latest in at least three rounds of layoffs in the cybersecurity team this year.

Yahoo has confirmed the layoffs, including the dissolution of its red team, stating that the changes are part of the company's ongoing security program evolution. "Yahoo’s security program has matured significantly over the past seven years and is widely recognised as a world-class, industry-leading operation. As part of this evolution, we’ve made strategic adjustments, including transitioning offensive security operations to an outsourced model," said Yahoo spokesperson Brenden Lee. 

"This change reflects the sophistication of our program and enables us to concentrate resources on critical security priorities, maintaining the highest standards of protection for our users and platforms,” the spokesperson added.

Last year, Yahoo also laid off more than 1,600 employees, roughly 20 per cent of its total workforce. CEO Jim Lanzone explained at the time that the layoffs were intended to boost the company’s profitability, with plans to refocus investments on other areas of the business.