Yahoo cybersecurity team laid off, outsourced by new CTO

NEW YORK, UNITED STATES — Yahoo’s cybersecurity division, called The Paranoids, has faced substantial layoffs over the past year.
According to a report by TechCrunch, approximately 25% of the team, equating to 40 to 50 employees out of 200, have been laid off or have left through attrition.
Strategic changes under new CTO Valeri Liborski
These layoffs are part of a broader strategic shift led by Yahoo’s new Chief Technology Officer (CTO), Valeri Liborski, who took on the role in September.
Liborski communicated these changes in an email to employees, highlighting adjustments across various technology units, including enterprise productivity and core services.
He expressed the challenges of these decisions, stating, “This was a very difficult decision and one I have not taken lightly.”
Outsourcing of offensive security operations confirmed
A significant change includes the complete elimination of The Paranoids’ red team, which was responsible for simulating cyberattacks to identify vulnerabilities within Yahoo’s network. Yahoo confirmed that these offensive security operations will now be outsourced.
Yahoo spokesperson Brenden Lee stated that the company’s security program has evolved over the past seven years and that outsourcing reflects this maturity, allowing Yahoo to focus resources on critical security priorities.
“This change reflects the sophistication of our program and enables us to concentrate resources on critical security priorities, maintaining the highest standards of protection for our users and platforms,” Lee added.
Impact on Yahoo’s overall workforce and strategy
The cybersecurity layoffs are part of a larger trend at Yahoo, which saw over 1,600 employees laid off last year — about 20% of its total workforce.
This restructuring was described by CEO Jim Lanzone as beneficial for Yahoo’s profitability, with plans to reinvest in other business areas.
Commitment to core security amid restructuring
Despite these changes, Yahoo asserts that its security program remains strong and industry-leading. The company is concentrating resources on essential security priorities to maintain high standards of protection for its users and platforms. The decision to outsource certain operations is viewed as a strategic move to enhance efficiency while maintaining security excellence.
These developments indicate a significant shift in how Yahoo manages its cybersecurity efforts under new leadership while navigating broader organizational changes aimed at improving profitability and operational focus.