Verizon is planning to slash around 2,100 jobs from AOL and Yahoo — 15% of the combined entity “Oath” — after the Yahoo deal closes, according to TechCrunch.
Verizon announced in July that it would acquire Yahoo’s core internet business for about $US4.5 billion in cash. There have been a few snafus along the way, notably Yahoo’s data-breach scandals, but the deal is supposed to close this month. TechCrunch’s sources said it will close within a week.
Verizon plans to merge Yahoo and AOL under the brand “Oath,” which will be headed up by AOL CEO Tim Armstrong.
Verizon will have to pay a price for laying off Yahoo employees. As Business Insider has reported, a so-called double trigger provision clause would grant all Yahoo employees a special payout should they lose their jobs quickly after this deal.
Besides the layoffs, there will also be an executive shuffle after the deal closes. Many of Yahoo’s top brass, including CEO Marissa Mayer, are expected to leave. But a few current Yahoo execs have been tapped to take on big roles at the new company.
AOL gave this statement to TechCrunch:
“Oath’s strategy is to lead the global brand space. With access to over 1B consumers upon close, we will be positioned to drive one of the most important platforms in the consumer brand space. Consistent with what we have said since the deal was announced, we will be aligning our global organisation to the strategy.”
Get the latest Yahoo stock price here.
NOW WATCH: Look inside the Arctic ‘doomsday’ seed vault built to protect millions of crops from any disaster
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.