Yahoo Reorganization and Job Cuts Required Due to Google Butt Kicking
Is Yahoo on the way out?
Yahoo Inc. needs a dramatic organizational shake-up and cuts in its work force of up to 20 percent, according to an internal memo written last month by Senior Vice President Brad Garlinghouse.
Yahoo is a dinosaur
An aged bloated dinosaur like Ted Kennedy seen here being rescued
from yet another drunken swimming attempt
Garlinghouse, a second-tier Yahoo executive who has taken increasing powerful roles in the company since joining 3 1/2 years ago, argues that Yahoo suffers from a lack of consistent leadership, business focus and a "single cohesive strategy."
"We lack a focused, cohesive vision for our company," Garlinghouse writes. "We want to do everything and be everything -- to everyone."
The document was published in the Saturday edition of the Wall Street Journal. A Yahoo spokesman confirmed the authenticity of the memo, but declined to comment directly on details contained in the memo or in the newspaper story.
The call for restructuring follows a series of embarrassments that have caused Yahoo shares to lose 31.5 percent of their value so far this year. It is struggling with a slowdown in parts of its advertising business while racing to keep pace with far-faster growing rival Google Inc.
The memo -- known as "The Peanut Butter Manifesto" because it argues that Yahoo's investment strategy is like spreading peanut butter too thinly on bread -- argues for a "radical reorganization" of the 12-year-old Internet media giant.
"I hate peanut butter," Garlinghouse writes.
"There are so many people in charge (or believe that they are in charge) that it's not clear if anyone is in charge." "I believe we must embrace our problems and challenges and that we must take decisive action," the memo states bluntly.
"All is not well," Garlinghouse writes. The memo itself was written in response to an October 11 New York Times article that he describes as "a painful public flogging."
Copywrite 2006 - Barry G.
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