Yahoo has undergone significant restructuring within its cybersecurity division, commonly known as The Paranoids, resulting in layoffs and a shift in operational strategy. Over the past year, approximately 25% of the team, equating to 40 to 50 members from a total of 200 employees, have either been laid off or left through attrition, according to sources familiar with the matter.

The restructuring comes under the leadership of Yahoo’s newly appointed Chief Technology Officer, Valeri Liborski, who assumed the role in September. In a recent email to employees, Liborski outlined changes across Yahoo’s broader technology unit, including the enterprise productivity and core services teams. Acknowledging the difficult nature of the decision, he stated, “This was a very difficult decision and one I have not taken lightly.”

Among the most notable changes is the complete elimination of Yahoo’s red team — a specialized offensive security unit tasked with conducting simulated cyberattacks to identify vulnerabilities before external threats could exploit them. Yahoo has confirmed this move, indicating a transition to an outsourced model for offensive security operations.

A Yahoo spokesperson commented on the decision, highlighting the evolution of the company’s security framework:

“Yahoo’s security program has matured significantly over the past seven years and is widely recognized as a world-class, industry-leading operation. As part of this evolution, we’ve made strategic adjustments, including transitioning offensive security operations to an outsourced model. This change reflects the sophistication of our program and enables us to concentrate resources on critical security priorities.”

The layoffs are part of broader workforce reductions at Yahoo, which saw over 1,600 employees — roughly 20% of its global staff — let go last year. CEO Jim Lanzone described these cuts as necessary for improving profitability and enabling the company to invest in other areas of growth.

The restructuring raises questions about how Yahoo will maintain its strong cybersecurity standards with reduced in-house resources. Outsourcing offensive security efforts is a notable shift from the proactive, internally driven approach that The Paranoids have been known for. While Yahoo asserts that these changes align with its broader strategy, the decision comes at a time when robust cybersecurity measures are more critical than ever.

As Yahoo realigns its priorities, it aims to strike a balance between cost efficiency and maintaining user trust. The long-term impact of these changes will be closely watched, as the company navigates the challenges of staying competitive while addressing modern cybersecurity threats.