Yahoo has implemented significant cuts to its cybersecurity division, The Paranoids, reducing the team by approximately 25%. This equates to a loss of around 40 to 50 employees from the group, which originally comprised about 200 members. Among the most notable changes is the complete elimination of Yahoo's red team, a specialized group tasked with simulating cyberattacks to uncover vulnerabilities in the company’s systems.
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| Credit:-Fast Company |
The layoffs are part of broader organizational changes within Yahoo’s technology division, spearheaded by the company’s new Chief Technology Officer, Valeri Liborski. In a recent email to staff, Liborski outlined the strategy, which includes transitioning offensive security operations—previously managed in-house—to an outsourced model. Yahoo stated this shift aims to enhance its overall security program by leveraging external expertise.
These changes follow a larger pattern of cost-cutting measures at Yahoo. In 2023, the company laid off over 1,600 employees, amounting to approximately 20% of its total workforce. At the time, Yahoo CEO Jim Lanzone framed the layoffs as part of a plan to streamline operations, improve profitability, and enable targeted investments in other growth areas.
The restructuring of The Paranoids and the elimination of the red team have raised questions about Yahoo’s approach to cybersecurity. While outsourcing offensive security functions could provide access to specialized services, some experts argue that in-house teams offer critical institutional knowledge and faster response capabilities.
As Yahoo undergoes these changes, the company’s ability to maintain robust cybersecurity defenses will likely come under scrutiny, especially given the increasing frequency and sophistication of cyberattacks in the tech industry.
