Verizon Communications Inc.’s beleaguered media group is laying off 7% of its staff and is focusing on fewer areas to revive its fortunes, according to people familiar with the matter.

The moves follow a monthslong review of the business by K. Guru Gowrappan, a 38-year-old former Yahoo and Alibaba Group executive who joined Verizon last spring. He succeeded former AOL executive Tim Armstrong, who departed late last year.

Mr....