Verizon plans to merge AOL and Yahoo to form a new company called Oath and lay off 2,100 people after the deal is completed, accounting for about 15% of AOL and Yahoo's current number of employees.
Yesterday Recode website reported that AOL and Yahoo after the merger of the number of layoffs of about 1,000 people. The reason for the layoffs is that there are overlapping functions of some of the functions of the two companies, such as the Finance Department, the Human Resources Department, the Marketing Department and the Administration Department. But according to people familiar with the situation, Recode reported that the number of layoffs was too low.
It is reported that AOL and Yahoo's current number of employees and about 14,000 people.
Informed sources said that although Verizon did not provide a choice for AOL and Yahoo employees to leave the job, but in order to achieve the goal of layoffs, the company left the staff in recent months have given some compensation.
We are also told that the proportion of layoffs in different departments is different. According to one of the insiders, the proportion of layoffs in some sectors may be as high as 30%, while the proportion of layoffs in other sectors may be only 5%, the specific layoffs of each department depends on their respective operating conditions.
The insider also added: "There seems to be a lot of people at this stage put forward a different idea, the company has made some efforts, some views have been heard and accepted. & Rdquo;
Last year in July, AOL's parent company Verizon announced that they finally finalized the acquisition of Yahoo's deal.
Now, the acquisition of Yahoo's deal is nearing its end. The proxy vote will take place today, which means that the deal will end in a week.
Verizon has decided to merge AOL and Yahoo after the entity to determine a new brand that Oath, and will be led by AOL CEO Tim - Armstrong (Tim Armstrong) leadership.
AOL's spokesman said: "Oath's strategy is to lead the global brand market." With close access to 1 billion consumers, we will be positioned as one of the most important platforms in the consumer brand field. As we said after the announcement of the transaction, we will adjust the global organization according to the strategy. & Rdquo;
In February, Yahoo and Verizon agreed to lower the price of the deal to $ 4.48 billion, which means that the price was lower than the previously agreed price of $ 350 million. Prior to this, Yahoo disclosed two large-scale data leak events, respectively, affecting 500 million user accounts and 1 billion user accounts.
It is unclear who will lead Oath's security business.