More than 2,000 jobs across AOL and Yahoo jobs will be cut when the corporate merger between Verizon and Yahoo closes, according to a report from TechCrunch.
A person with knowledge of the Verizon merger told TheWrap that layoffs are indeed coming to the two companies, but declined to specify the exact amount. Yahoo declined TheWrap’s request for comment on this story.
Verizon — the parent company of AOL — announced it would scoop up Yahoo last July for nearly $5 billion. The companies agreed to drop $350 from the sales price in February after two hacks compromised more than a billion Yahoo accounts.
With roughly 14,000 workers between AOL and Yahoo, the 2,100 positions being made “redundant” represents 15 percent of their employees, according to the TechCrunch report. The cuts are being made across the HR, finance, administration, and marketing departments.
“It seems that a lot of thought and effort has gone into this, and counterpoints have been listened and accepted,” said one source in the TechCrunch report. I’m sure that’ll make the 2,000 people losing their jobs feel better.
Following the merger, AOL and Yahoo will be rebranded as “Oath,” with AOL CEO Tim Armstrong at the helm.
“Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy,” said an AOL spokesperson in an email to TheWrap.
The Verizon-Yahoo deal is expected to close on June 13, according to a Thursday announcement from the Sunnyvale, California-based company.
Yahoo stockholders approved the previously announced proposed sale to Verizon of the company’s operating business, the company said Thursday.
The remainder of Yahoo will change its name to “Altaba Inc.” and register as an investment company, as was previously announced.