Verizon this summer is expected to launch a new subsidiary that’ll combine the core businesses of AOL and Yahoo into a single, cohesive unit called Oath. Given the size of the merger, there are obviously a lot of redundancies involved and it’ll be up to Verizon to do some housecleaning.
AOL and Yahoo have operated as independent companies for decades. That means that each entity has its own executive team, marketing division, finance department, human resources team and so on. When they come together, there’s going to be a lot of overlapping jobs and many of them will be eliminated.
Sources reporting to TechCrunch claim as many as 2,100 jobs, or roughly 15 percent of their combined global workforce, are in jeopardy. Re/code pegged the number around 1,000 yesterday but TechCrunch’s sources are saying that figure is too low.
TC’s sources are also saying that the proportion of redundancies is not equal across departments. For example, one division may see 30 percent of its staff let go while another could only lose five percent of its workers.
Verizon announced intentions to purchase AOL in May 2015 and closed the deal in just over a month. In comparison, it’s been nearly a year since Verizon revealed intentions to buy Yahoo. That said, sources expect Verizon to close on the Yahoo deal in the coming weeks (and perhaps as soon as next week).