SUNNYVALE, California: Tough times call for tough measures and Yahoo ceo Terry Semel has not shrunk from the task of revitalizing the sluggish internet pioneer.
The biggest shakeup at the company since 2001 will streamline its disparate operations into three groups. each focused on its portal's audience, advertising network and technology.
As part of the revamp, aka Project Soufflé, Yahoo chief financial officer Susan Decker will assume an even more prominent management role running the advertiser and publisher division. An external search is also under way both for an audience group head and a new cfo.
The new technology group, led by chief technology officer Farzad Nazem, will speed development of next-generation ad platforms and quicken the pace of innovation.
Comments Semel: "The internet is continuing to grow and evolve at a rapid pace, and we're reshaping Yahoo to be a leader in this transformation."
Meanwhile, chief operating officer Dan Rosensweig will be shown the door in March when the reorganization is due to be complete. Also on his way out is Lloyd Braun, a former ABC television executive hired two years ago to lead a push by Yahoo into the media business.
The company has struggled with a string of profits warnings and technology glitches that have seen it fall further behind arch-rival Google in the online advertising market [WARC News: 21-Sept-06].
Last month a leaked memo from Yahoo svp Brad Garlinghouse argued the company had spread itself too thin across a wide range of online services. It called for the group to sell its non-core businesses and cut its workforce by up to 20% [WARC News: 21-Nov-06].
Data sourced from Financial Times online; additional content by WARC staff