About 2,100 people will lose their jobs at Yahoo and AOL after Verizon Communications Inc. completes its acquisition of Yahoo and combines the two onetime internet rivals, a person familiar with the matter said. The cuts are being made across the HR, finance, administration, and marketing departments.
The acquisition marks the end of the line for Yahoo as a standalone company, a storied Web pioneer once valued at more than $US100 billion.
According to a regulatory filing submitted by Yahoo, once the sale closes, Yahoo will become an investment company called Altaba, responsible for managing the remaining assets, which are holdings in Yahoo Japan and Chinese e-commerce giant Alibaba, plus a patent portfolio. The shareholder meeting to approve the deal takes place tomorrow.
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.
Despite such profitable and booming business prospects, the price performance of Verizon is depressing.
Verizon shares are down 15 per cent this year. Verizon expects mobile video and advertising to be new sources of revenue outside the oversaturated wireless market.
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