GeoCities employees laid off in Yahoo! buyout

Published on .

Yahoo! reportedly laid off up to 200 GeoCities employees May 28 when the Internet portal completed its acquisition of the online community. Yahoo! did not return calls by press time. In a news release, Yahoo! said 100 GeoCities employees would be employed at Yahoo!'s Santa Clara, Calif., facility and at regional offices around the country. Yahoo! also said it would close GeoCities' headquarters in Marina del Rey.

Yahoo! expects to take a onetime charge of about $68 million in the second fiscal quarter to account for buyout and relocation expenses. When the deal was announced in February, it was described as a $4.6 billion stock swap. Many GeoCities employees have gotten rich from the Yahoo! buyout through valuable stock options. One GeoCities executive, who turned down offers to work at Yahoo!, bragged about the prospects of early retirement.

Copyright May 1999, Crain Communications Inc.

Most Popular
In this article: