John Lamparski | Getty Images for Advertising Week | New York
Tim Armstrong speaks onstage during the Building Brands People Love: A Fireside Chat with AOLs Tim Armstrong on the Times Center Stage during 2016 Advertising Week New York on September 26, 2016 in New York City.
According to sources, layoffs are expected to take place across AOL and Yahoo that could number up to 1,000 jobs. That is less than 20 percent of the combined company, according to sources.
This action is not unexpected, given that both companies have a lot of redundancies, including in human resources, finance, marketing and general administration.
The merger between the two companies — after Verizon bought both in succession to add tech and content to its mobile services — is expected to be completed in the next week. The shareholder meeting to approve the deal takes place tomorrow.
Plans to combine both companies have been in the works for a while, as the pair attempt to make a cohesive unit out of two entities that have multiple assets and also multiple problems. It will be headed by AOL CEO Tim Armstrong, who will become the CEO of Oath, the new name for the Verizon subsidiary.
I have calls in to all kinds of spokespeople and await some sort of comment.
—By Kara Swisher, Recode.net.
CNBC’s parent NBCUniversal is an investor in Recode’s parent Vox, and the companies have a content-sharing arrangement.
Watch: ‘Oath’ to oversee Yahoo & AOL brand, says Tim Armstrong