Feeds

Yahoo! pleads! for! ad! juice! as! products! guru! exits!

CEO tells staff it's time for YET ANOTHER makeover

Intelligent flash storage arrays

Yahoo!'s latest broom, Scott Thompson, is trying to fix the company's ailing business by giving the Purple Palace yet another revamp.

This means that people need to be axed, products need to be sharpened or dumped and various execs are suddenly vanishing.

All of those moves happened under Thompson's predecessor Carol Bartz, who tried to turn Yahoo! around but was eventually sacked for failing to achieve that ambitious goal.

In a memo to staff yesterday, Yahoo!'s current chief said that the internet "pioneer" needed to focus on its customers. In other words, the company needs to do a much better job of enticing admen through the door.

Ad revenues – the lifeblood of any prominent web estate – have continued to decline at Yahoo!. Just last week, the firm confirmed plans to lay off 2,000 employees, or 14 per cent of its workforce.

Thompson told staff yesterday that a "new leadership structure" would be created as of 1 May to streamline Yahoo!'s biz. Three divisions will operate on consumer, regions and technology. Product development, meanwhile, has effectively been distilled, which means each group is responsible for its own product development. “We are bringing dedicated product engineering resources into each unit, much closer to our users,” Thompson said.

"Each of the three groups will be charged with delivering the best customer experiences and have very clear accountability for getting results," the Yahoo! boss said.

"Our new consumer group will be all about creating great, engaging user experiences. Our geographic regions will serve our advertisers and agencies and be accountable for all Yahoo! revenue."

His final consideration was for for tech, which Thompson said would "provide the advanced infrastructure, technology and science to enable our consumer group and the regions to deliver our best products and experiences into market, at scale, and fast".

But arguably, technology is at the bottom of his pile of priorities, given that Yahoo! is now in the game of simply trying to survive. Meanwhile, Blake Irving, who was brought in by Bartz about two years ago to overhaul the products division, has decided to quit the company.

That probably has something to do with the fact that so many of his people at Yahoo! were sacked last week. The company is ditching product development in a BIG WAY with Thompson scrapping that wing of the biz. No wonder then that one-time Microsoftie Irving wanted out.

Much more than ever, Yahoo! is trying to reposition itself, not as a tech company, but as an online media outfit that publishes content and makes money from advertising. The only problem with that is that Google and Facebook long ago beat it to the punch and anyway, Yahoo! was always, first and foremost, a sticky portal injected with ad juice. The only problem is it forgot to reapply the glue. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.