Af­ter Ya­hoo Deal is Fi­nal­ized, Ver­i­zon Plans to Lay Off 2.1K Em­ploy­ees

The Jewish Voice - - NEW YORK - By Re­becca Gold

Once Ver­i­zon com­pletes its ac­qui­si­tion of Ya­hoo’s in­ter­net busi­ness on Tues­day, June 13, the com­pany plans to let 2,100 em­ploy­ees go.

The ache for many of the Ya­hoo em­ploy­ees that lose their job will be eased by the value of their ac­cu­mu­lated stock com­pen­sa­tion, since the com­pany’s share price in­creased 10 per­cent on Thurs­day, June 8.

Ac­cord­ing to a re­port in the New York Times, “The lay­offs which were de­scribed by a per­son briefed on Ver­i­zon’s plans, rep­re­sent about 15 per­cent of the work force at Ya­hoo and AOL, the Ver­i­zon unit with which it is to be com­bined. Ya­hoo, which had 8,600 full-time em­ploy­ees as of March 31, has al­ready en­dured many rounds of cuts. Dur­ing the five years that Marissa Mayer, the chief ex­ec­u­tive, has led the com­pany, its work force dropped by 46 per­cent. AOL has also gone through re­peated lay­offs, most re­cently in Novem­ber, when it cut 500 jobs.

Both com­pa­nies de­clined to com­ment on the lay­off plans. But the steady shrink­ing of Ya­hoo and AOL un­der­scores the ma­jor chal­lenges faced by both com­pa­nies as they com­pete against the two be­he­moths of the in­ter­net, Google and Face­book, for ad­ver­tis­ing dol­lars.”

For over a decade, ya­hoo tried to figu e out a strat­egy for suc­cess. Now the in­ter­net gi­ant has tossed in the towel. For a mere frac­tion of its top worth in 2000, Ya­hoo has sold its core busi­ness to Ver­i­zon.

The sale of the busi­ness and re­lated ar­range­ments for com­pen­sa­tion was ap­prove by Ya­hoo share­hold­ers on Thurs­day, June 8. Once the deal closes on Tues­day, June 13, what is left of Ya­hoo will be re­named Altaba. The money from the sale along with Ya­hoo’s sig­nific nt stock hold­ings will then be held in Alibaba Group and Ya­hoo Ja­pan.

Af­ter the de­ci­sion on Thurs­day, share prices for Ya­hoo in­creased $5.16, for a clos­ing price of $55.71. This means that the ter­mi­nated Ya­hoo em­ploy­ees will get big­ger pay­outs.

The NYT re­ports, “Based on the in­creased stock price, Ms. Mayer will de­part with $264 mil­lion for her five years of work at Ya­hoo, up from $239 mil­lion last Fri­day. Other se­nior Ya­hoo ex­ec­u­tives who are laid off will also get big sev­er­ance pack­ages, in­clud­ing up to two years of pay and ac­cel­er­ated vest­ing of all stock com­pen­sa­tion. For ex­am­ple, Lisa Utzschnei­der, the chief rev­enue offic , will re­ceive about $22 mil­lion, and Ken Gold­man, the chief fin ncial offic , will get about $12 mil­lion, based on the cur­rent stock price and se­cu­ri­ties fili gs by the com­pany. Lower-level Ya­hoo em­ploy­ees will also re­ceive en­hanced sev­er­ance ben­e­fits that were es­tab­lished be­fore the Ver­i­zon deal was struck last sum­mer.”

Ver­i­zon plans to ter­mi­nate 2,100 em­ploy­ees af­ter its ac­qui­si­tion of Ya­hoo’s in­ter­net busi­ness is com­pleted on Tues­day, June 13.

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