Yahoo Sets Up Substantial Reorganizational Operation

Yahoo is preparing a massive reorganizational process of its mail, search and homepage divisions in an attempt to boost the coordination between its sales groups. The move is considered a mandatory step as the company needs to present its investors with a detailed plan for improving the business.

Another reason for the strategy is the departures of Vish Makhijani, the general manager of Yahoo's Web search business, and also Brad Garlinghouse, responsible for several services such as e-mail and instant messaging. Besides the two, Qi Lu, the top engineer for the Yahoo Panama search marketing platform and Jeff Weiner, executive vice president also announced their intentions to leave the company.

“Wall Street has lost all confidence at this point,” said Ross Sandler, an analyst with RBC Capital Markets, according to the New York Times. He also added that “The senior managers have clearly lost confidence in the strategy and have lost confidence in Sue and Jerry, and that’s not a good thing,” referring to Jerry Yang, the chief executive and Susan L. Decker, the president, both rather isolated at this point.

The rumors about the significantly large departures haven’t been confirmed by Yahoo’s officials, as the company wants to present itself to clients and investors as a stabile and devoted team.

There is a good chance that the rapid reorganizational process might cause a lot of distress inside the company and even turn out to be a bad move, because changing the job descriptions and attributions is far better efficient when it is done after careful considerations and with one person at a time.

On the other hand some say that Yahoo will benefit from such a move and the new perspectives offered by the departments’ new leaders will surely boost the results and progress.