More than 2,000 workers will lose their jobs at Oath, the new subsidiary formed between Yahoo and AOL following Verizon’s $4.5 billion buyout of Yahoo, said Oath’s CEO Tim Armstrong on CNBC this morning.
An Oath spokesperson confirmed the layoffs to TheWrap. Roughly 15 percent of the combined AOL-Yahoo workforce will be let go, which amounts to an estimated 2,100 workers who will lose their jobs, with the cuts starting on Wednesday.
“It’s mainly focused on us putting more resources toward the front end, towards the consumer side,” said Armstrong on CNBC’s “Squawk Box.” “Those are mainly happening this week. We’re trying to get everything done that we can,” he added.
Armstrong was tapped as Oath’s first CEO after leading AOL since 2009. He also said product and engineering jobs will take the least hits as part of the layoffs.
Verizon — the parent company of AOL — announced it would scoop up Yahoo last July for nearly $5 billion. The companies agreed to drop $350 from the sales price in February after two hacks compromised more than a billion Yahoo accounts.
“Oath’s strategy is to lead the global brand space. With access to over 1B consumers upon close, we will be positioned to drive one of the most important platforms in the consumer brand space,” said Caroline Campbell, Senior Vice President of Brand and Communications at AOL, in an email to TheWrap. “Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy.”
Campbell declined to comment on whether employees will be granted a standard severance package.
The Verizon-Yahoo merger closed on Tuesday, with Yahoo CEO Marissa Mayer leaving the company after five years in charge.