Oh, baloney.
The man’s a 90 year old loon bigot who grew up in Iran (or the equivalent).
You omitted the rebuttal from the very article you site:
“Rabbi Yosef’s remarks — suggesting outrageously that Jewish scripture asserts non-Jews exist to serve Jews — are abhorrent and an offense to human dignity and human equality,” said AJC Executive Director David Harris. “Judaism first taught the world that all individuals are created in the divine image, which helped form the basis of our moral code. A rabbi should be the first, not the last, to reflect that bedrock teaching of our tradition.””
Well yes, that's who was leading Judaism in Israel as established by Israeli law. He is dead now and his son has taken his place as the Chief Sephardi Rabbi, apparently still making the same types of comments as his dad.
The old Catholic joke can't be used anymore ("is the Pope Catholic?"), but I think we can ask, "Is the Chief Rabbi of Israel Jewish!?"