Verizon is already eyeing a reduction of up to 2,100 employees from its Oath business following the close of its AOL-Yahoo merger, new reports indicate.
Recode on Wednesday reported the cuts could hit a total of 1,000 positions, accounting for less than 20 percent of the integrated company. But subsequent reports from Variety and TechCrunch indicated those outlets confirmed cuts would total 15 percent of the combined company – or about 2,100 positions out of the company’s combined 14,000 employees.
Recode said the cuts would likely come in areas where there is overlap between AOL and Yahoo. Such eliminations are typical of mergers, but Recode noted areas for reductions in this case might include human resources, finance, marketing, and general administration.
The news came just ahead of a Thursday vote from Yahoo shareholders to approve the $4.5 billion merger deal with Verizon. The transaction is slated to clise Tuesday, June 13.
While it remains to be seen where exactly AOL and Yahoo will streamline its workforce, there are a few names that are already known to be sticking around post-close.
In a memo distributed in April and published by Recode, AOL CEO Tim Armstrong revealed a handful of Yahoo carryovers will join the leadership team at Oath. These include Jeff Bonforte, who will be Oath’s head of communications, data, and search; Atte Lahtiranta as leader of technology; Simon Khalaf at the helm of media brands and products; and John DeVine, who will take the reins for global sales and customer operations. Additionally, Armstrong indicated Rose Tsou, the current Yahoo head of Asia-Pacific, will lead Oath’s combined APAC operations. Yahoo CEO Marissa Mayer, however, was noticeably absent from the list.
Oath staffers will have a hefty helping of work on their plate once the transition is complete. At a May analyst meeting, Armstrong outlined three main goals Verizon has set for Oath to hit by 2020. Those, he said, include attracting more than 10 million creators and two billion consumers, and achieving revenues in the $10 billion to $20 billion range.
Editor’s note: This article has been updated with the results of the Yahoo shareholder’s vote.
