It looks like once Verizon acquires the combined Yahoo Inc. and Aol companies, which will be re-branded as Oath, there’s going to be a lot of people getting fired.
A report on Wednesday, citing sources familiar with the matter, has revealed that up to 1,000 layoffs are expected at the combined Yahoo and Aol companies. According to Recode, cutting this many jobs would be almost 20% of the staff at the combined companies.
Yahoo had previously said that Verizon’s acquisition is expected to close this month and is on track to being completed in the next week. The shareholder deal that will approve the deal is scheduled for Thursday of this week.
“With the transaction anticipated to complete in June, I’ve never been more proud of the improvements we’ve made to the business and the value we’ve delivered to our shareholders,” Marissa Mayer, Yahoo’s CEO, said in a statement when the company released its first quarter results.
The new company will be headed by AOL’s CEO Tim Armstrong. Verizon’s goal for the acquisition is to build an online advertising giant that can go up against Google and Facebook.
Disclaimer: We have no position in Verizon Communications Inc. (NYSE: VZ) nor Yahoo! Inc.( NASDAQ: YHOO) and have not been compensated for this article.