Yahoo Chief Executive Carol Bartz on Thursday took the wraps off a broad reorganization plan designed to dismantle what she called the “silos” that had slowed down the Internet company.
The move came as Chief Financial Officer
Blake Jorgensen became the latest executive to leave Yahoo, which has struggled to convince Wall Street that it has a solid growth strategy after turning down a takeover bid from Microsoft Corp last year.
Under the plan to simplify Yahoo’s management structure, its various technology and product groups will be combined into one entity led by Chief Technology Officer Ari Balogh, according to an email Bartz sent to employees.
Yahoo will also divide the world into just two regions — North America and International — from four previously.
“Today I’m rolling out a new management structure that I believe will make Yahoo a lot faster on its feet,” Bartz, who took the CEO reins six weeks ago, wrote on Yahoo’s corporate blog. “We’ll be able to make speedier decisions, the notorious silos are gone, and we have a renewed focus on the customer.”
The changes follow weeks of meetings between Bartz and various division heads as she familiarized herself with Yahoo’s many businesses. Yang’s 18-month stint as CEO was defined by his rejection of a $47.5 billion takeover bid from Microsoft, which the software maker subsequently withdrew.
Yahoo’s stock price has sunk from a high of $29.73 last May to below $13 on Thursday, as revenue and profits have been pinched by an industrywide slowdown in advertising spending.
The goal of the new organization is to deliver the best possible consumer and advertiser experience, with greater speed and efficiency, according to a Q&A document distributed by Yahoo management to employees.
“It’s premature to discuss our strategic options. For the time being, nothing is off the table and creating shareholder value is our first priority,” it said. Yahoo added the changes were not driven by a desire to cut costs, but that the company is constantly reviewing its business and expenses.