SUNNYVALE, Calif. (KRON) — Thursday, plans to lay off more than 20 percent of Sunnyvale-based internet platform Yahoo’s workforce–more than 1,600 employees–were announced, Axios reported.

These layoffs will consist of about 50 percent of Yahoo’s current ad tech unit’s staff, CEO Jim Lanzone told Axios.

The layoffs are reportedly part of a major restructuring of the company’s digital advertising unit as it ceases to try and directly compete with Meta and Google. Lanzone added that the layoffs have nothing to do with any financial challenges the company is facing.

“The moves are meant to simplify and strengthen the good parts of the business, while sunsetting the rest,” Lanzone told Axios.

While Yahoo plans to shut down the less profitable sections of its digital advertising unit, it will double down on other aspects that will potentially add roles back to the company, Axios reported.

Yahoo was acquired by Apollo Global Management in September 2021.

Yahoo is one of many tech companies that have announced layoffs this year as businesses cite the economic change post-pandemic and massive restructuring.