Verizon's first move with Yahoo is to get rid of 2100 jobs

Posted June 09, 2017

(YHOO - Free Report) deal worth $4.48 billion. The latter will be a holdings company with primary stakes comprising of its stake in Alibaba Group Holding Ltd (BABA.N) and a 35.5 percent stake in Yahoo Japan Corp (4689.T).

The layoffs were expected, given that both companies have a lot of redundancies, including in human resources, finance, marketing and general administration.

Verizon's plans to acquire Yahoo - along with AOL - were announced nearly a year ago, but it took almost a year for the details to be worked out.

Yahoo shareholders have finally approved their company's impending sale to Verizon.

Verizon will cut around 15 per cent of its AOL and Yahoo staff around the world, once it merges the two into a new company called "Oath".

AOL agreed to purchase Yahoo in July for $4.83 billion but later reduced that price to $4.5 billion after a series of data breaches at the search pioneer. The CEO has chalked out plans to increase Oath's combined user base from 1.3 billion consumers to 2 billion and achieve sales in the range of $10 billion to $20 billion by 2020. According to The Street, an AOL spokesperson did not comment on layoffs, but did acknowledge changes.

"Yahoo stockholders voted to approve the advisory vote on the compensation payable to the company's named executive officers in connection with the completion of the sale transaction", Yahoo said in a statement.

Despite such profitable and booming business prospects, the price performance of Verizon is depressing.

Recent reports claim that Verizon Communications Inc. Verizon stock dipped about 0.7 percent to $46.19.