More than half of the employees of Web community GeoCities are expected to lose their jobs once Yahoo! shareholders approve the $4.5 billion deal.
Sources told News.com layoff notices had already gone out to about 300 employees and that GeoCities founder and Chairman David Bohnett will not have a key position in the new company.
Neither company would comment on layoffs or any management shuffles because both are in a “quiet period” mandated by the Securities and Exchange Commission.
The report said termination notices went out last week saying the affected employees last day would be June 4, assuming Yahoo!’s board approves the deal before then.
Departments expected to be heaviest hit by layoffs are sales and marketing, human resources, public relations and finance positions. Laid off employees are expected to receive a severance package that includes three months pay and a prorated annual bonus. That’s in addition to stock options they hold which will vest once Yahoo!’s buyout closes.