Blog Post

More on Yahoo’s Major Reorg; Could Centralize Product Groups

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

While the plans for the major Yahoo (NSDQ: YHOO) reorg are fluid, some more details are leaking out, including that the company may centralize its crazy amount of product groups, such as its mail, search and homepage divisions, into a global product organization, reports WSJ. These changes are what’s leading some of the senior execs, who are not happy with how these changes would affect them, to leave. The plans for reorg picked up steam after Jeff Weiner told the company he would be leaving.

Meanwhile, for whatever it is worth, Hilary Schneider’s stock is on the rise at Yahoo: the EVP for global partner solutions is likely to oversee revenue and sales, and possibly Yahoo’s media properties.

A big part of Yahoo’s issue is to have a product overdose, or to bring it to the execution level, death by product management. I would not be surprised it some products are disposed of.

Staci adds: In some respects, it doesn’t matter what this reorg looks like — the Yahoos have reorg fatigue combined with frustration over the way the Microsoft (NSDQ: MSFT) situation was handled by CEO Jerry Yang and president Sue Decker and, in some cases, resentment over the decision not to sell despite the offer of a premium price. The way this latest move is being handled and the continued indecision only makes it worse. The execs reporting to EVPs and the layer below them have a bad case of whiplash and it would be surprising if anyone with the financial ability to leave or a job to go to where they can actually spend their time on work isn’t considering alternatives. That includes the four leaders who reported to Weiner. As I write this, there’s a distinct possibility that not only Vish Makhijani and Brad Garlinghouse will leave, but we have been told Scott Moore, who heads Yahoo Media Group, is among those considering an exit and the LAT is reporting that as well as the possibility that Tapan Bhat, responsible for the front door and network services, could leave as well.

Add to the mix uncertainty over the CEO position. One suggestion is that this latest reorg helmed by Decker is the prelude to yet another CEO turnover that would put her at the top. When people at Yahoo tell you they aren’t sure who their CEO will be six weeks from now, and that they’ve lost confidence in Decker as a possible CEO, it’s hard to see an end any time soon to the angst. To be fair, that might not be a representative attitude, but it is telling. There’s also absolutely no certainty that Decker would get the job; she’s never had the top job but she has been part of setting the strategy for several years now and it would be hard to separate her from those results.

One Response to “More on Yahoo’s Major Reorg; Could Centralize Product Groups”