Yahoo has laid off around 25% of its cybersecurity team, known as The Paranoids, over the last year, according to sources familiar with the matter. The company has lost a total of 40 to 50 people from a team of 200 employees since the start of 2024, with multiple rounds of layoffs impacting the cybersecurity team.

The layoffs are part of a broader restructuring effort across Yahoo's technology unit, which includes enterprise productivity and core services. In an email to employees, Valeri Liborski, Yahoo's chief technology officer, announced the changes, stating that the decision was "very difficult" and one that was not taken lightly.

The Paranoids' red team, which conducts cyberattack simulations to identify weaknesses in the company's network, was eliminated entirely this week. The team's elimination is a significant blow to Yahoo's cybersecurity capabilities, as it was responsible for identifying vulnerabilities before external hackers could exploit them.

Yahoo confirmed the layoffs, including the elimination of its red team, in a statement to TechCrunch. According to a spokesperson, the company's security program has "matured significantly" over the past seven years and is now transitioning to an outsourced model for offensive security operations. This change is intended to enable Yahoo to concentrate resources on critical security priorities and maintain the highest standards of protection for its users and platforms.

The layoffs are not limited to the cybersecurity team. Last year, Yahoo laid off over 1,600 employees, around 20% of its total workforce, as part of a broader effort to improve profitability. CEO Jim Lanzone stated at the time that the layoffs would be "tremendously beneficial" for the company's profitability and that Yahoo would "go on offense" and invest in other parts of its business.

The impact of these layoffs on Yahoo's cybersecurity capabilities remains to be seen. While the company claims that its security program has matured significantly, the elimination of its red team and the loss of experienced cybersecurity professionals may leave it more vulnerable to cyber threats. As the company transitions to an outsourced model for offensive security operations, it will be important to monitor its ability to protect its users and platforms.

The layoffs also raise questions about the future of Yahoo's cybersecurity team and its ability to attract and retain top talent in the industry. With the elimination of the red team and the loss of experienced professionals, Yahoo may struggle to maintain its reputation as a leader in cybersecurity.

As the tech industry continues to evolve, companies like Yahoo must adapt to changing circumstances and prioritize their resources accordingly. While the layoffs may be a necessary step for Yahoo's long-term success, they also have significant implications for the company's cybersecurity capabilities and its ability to protect its users and platforms.