The Yahoo logo is displayed outside of offices in Santa Clara, Calif., in this Monday, April 18, 2011 (AP Photo/Paul Sakuma, File)

In light of a nationwide slew of tech layoffs in recent months, Axios reported on Thursday that internet search provider Yahoo has announced plans to cut more than 20% of its workforce, citing several reasons for the move, including implementing a major restructuring of its ad tech unit.

Citing information executives, Axios said that the layoff will have consequential effects on more than half of Yahoo's ad tech employees, which roughly totals 1,600 workers.

Quoting Yahoo CEO Jim Lanzone, the report stated that the layoffs were not owed to financial issues.

They rather stemmed from the strategic restructuring of the company's Yahoo for Business advertising unit, which failed to be lucrative.

Lanzone said that the changes will be "tremendously beneficial for the profitability of Yahoo overall," adding that it will enable the company "to go on offense" and allocate more investments in parts of its business that are profitable.

On January 21, Google's parent company Alphabet announced that is cutting 12,000 jobs, which equals about 6% of its workforce.

The reason for doing so is owed to the changing economic reality, according to an email written by CEO Sundar Pichai to his employees.

Alphabet reportedly employed 50,000 workers over the past two years to complement the high demand during the pandemic times.