Yahoo has significantly downsized its cybersecurity division, known as The Paranoids, reducing the team by about 25 per cent over the past year. This equates to a loss of 40 to 50 employees, out of an original team of 200, through layoffs and attrition, since the start of 2024.
The downsizing highlights major shifts in Yahoo’s approach to cybersecurity and broader operational strategies.
The Paranoids’ red team, tasked with simulating cyberattacks to uncover vulnerabilities, was completely disbanded this week. These changes are part of at least three rounds of layoffs affecting the cybersecurity division this year, according to sources familiar with the matter. Yahoo confirmed the elimination of the red team and stated that it is transitioning offensive security operations to an outsourced model.
The layoffs within The Paranoids are part of a larger wave of reductions at Yahoo, which saw over 1,600 employees, about 20 per cent of its workforce, laid off in 2023. The company has indicated that these measures aim to enhance profitability and reallocate resources toward growth areas within its business.
In addition to the cybersecurity team, Yahoo has implemented broader changes across its technology unit. Valeri Liborski, chief technology officer, Yahoo, informed employees via email about adjustments affecting enterprise productivity and core services. The restructuring comes as part of Yahoo’s strategic focus on refining its operational priorities.
While Yahoo emphasises the maturity and evolution of its security programme, the decision to outsource certain functions and reorganise teams reflects its endeavours to adapt to industry challenges while maintaining high security standards.
