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Yahoo! President and CEO Marissa Mayer delivers a keynote during the Yahoo Mobile Developers Conference on February 18, 2016 at The Masonic in San Francisco, California.
Verizon is set to cut thousands of jobs from Yahoo and AOL as the companies integrate, a source familiar with the matter told CNBC on Thursday.
Brands in the new combined media entity, to be named Oath, could lay off a total of about 2,100 staffers, or about 15 percent of the workforce, the source familiar with the matter said. The cuts are expected to be announced next week once the deal closes.
“Oath’s strategy is to lead the global brand space. With access to over 1 [billion] consumers upon close, we will be positioned to drive one of the most important platforms in the consumer brand space. Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy,” an AOL spokesperson said.
Recode previously reported that up to 1,000 jobs could be cut, while Reuters and The Wall Street Journal reported a number closer to 2,000. The companies declined to comment on the reports at that time.
Yahoo shareholders signed off on Verizon‘s proposal to buy Yahoo’s core internet business on Thursday.
Verizon announced an agreement to acquire Yahoo in July, after a long bidding process. Now that it’s approved, Yahoo expects to close the deal on Tuesday, a move that will bulk up Verizon’s advertising efforts.
The shareholder vote — part of an annual meeting — wraps up an arduous sale process that was stymied by the revelations of two massive data breaches. The parts of Yahoo that were not bought by Verizon will become a company named Altaba.
— Reporting by CNBC’s Deirdre Bosa, additional writing and reporting from Anita Balakrishnan.