Nearly nine months ago, co-founder Jerry Yang replaced Terry Semel as CEO of Internet search icon Yahoo. The change in management was necessitated by Yahooâ€™s continued second place showing to rival Google in search market share and Yahooâ€™s subsequent lagging stock performance. Yang came in promising to reshape Yahoo into the Internet power-hitter it used to be.
Yang took the helm at Yahoo on June 18, 2007. A month later he published an open letter outlining his hopes, dreams and challenges as returning CEO. In that letter, he stated outright that there were no sacred cows at Yahoo. â€œWhile our business continues to grow, we need to dramatically improve our performance and I intend to put us back on a winning path.â€
Since then, nothing much has happened until now. This week, with share prices hovering in the very-low $20â€™s, it looks like Yahoo is finally making a move to satisfy frightened investors. Yangâ€™s new broom is poised to sweep the house clean.
This morning, many search media outlets are reporting that major lay-offs are coming to Yahoo operations around the world. Over the weekend, infamous former analyst turned business blogger Henry Blodget, wrote that Yang had Yahoo division heads compile a list of 1,500 to 2,500 employees who are to be laid off.