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 at The Paranoids are a part of a broader wave of layoffs at Yahoo, which in 2023 laid off over 1,600 workers, or almost 20% of its staff. According to the organisation, these actions are intended to increase profitability and reallocate funds to areas of the business that need expansion.
Yahoo’s technology unit has undergone more extensive adjustments in addition to the cybersecurity team. Yahoo’s chief technical officer, Valeri Liborski, emailed staff members about changes that will impact core services and company productivity. Yahoo’s strategic focus on streamlining its operational priorities includes the restructuring.
Yahoo places a strong priority on the development and maturity of its security program, but its efforts to meet industry demands while upholding strict security requirements are demonstrated by the choice to reorganise teams and outsource some tasks.
