One of the selling points of Yahoo Mail is the generous offering of 1TB of storage for free users, which is substantially more than what competing services are providing. However, that is about to change as the company is shrinking the storage to a mere 20GB, which is a dramatic 98% reduction.
Users have reported that the company has sent out emails informing them that it is reducing the storage limit for their accounts. Accounts that exceed the new limit will be unable to send or receive any emails until the user either frees up some space or buys additional storage through Yahoo Mail Plus.
Speaking of which, it seems Yahoo is also reducing the available storage for the paid upgrade. Previously, paying users could enjoy 5TB of storage, but the company has now slashed it to just 200GB. What’s more, Yahoo makes no mention of the reduction on its Yahoo Mail Storage FAQ page. The company also did not specify why it is decreasing the storage capacity.
Of course, users are not pleased with this new development. Granted, most users likely won’t come close to using up 1TB of storage, which is probably one of the reasons Yahoo is reducing it. However, the new limit is still a massive downgrade, and is much closer to what other email providers are offering. For instance, Gmail accounts come with 15GB of storage. Users are also disappointed in the company’s lack of transparency.

It is worth noting that not all accounts will be immediately affected. According to Yahoo, the change is being rolled out at different times in different regions. Additionally, it will be offering a grace period for users to sort out their accounts. The company also explained that it will introduce new tools and options to help the user manage their storage.
(Source: Amanz, Reddit [1], [2])