Whole Lotta Shakin’ Goin’ On at Yahoo

So what do you do when you are looking lamer than usual? Go out and find some fresh blood? Nah. You get rid of a few bodies and then start a round of Musical Chairs. Yahoo said yesterday that it was restructuring its operations and shuffling its management ranks amid growing criticism in and outside the company that it had become too bureaucratic to compete effectively against nimbler rivals.

The moves include the departure of Daniel L. Rosensweig, the chief operating officer since April 2002, and the resignation of Lloyd Braun, the former ABC executive who has run Yahoo’s media group.

Under the plan, Yahoo will reorganize itself into three operating units, including one focused on its audience and one on its advertisers and publishers. A third unit, focused on technology, will develop products serving the entire organization.

The reorganization appears to signal the ascendancy of Susan L. Decker, the chief financial officer, a well-regarded executive whose responsibilities were recently expanded to include autos, classifieds, HotJobs, shopping, travel and other Yahoo products. She will now head the advertiser and publisher group.

Ms. Decker joined Yahoo in 2000 from Donaldson, Lufkin & Jenrette, where she served as global director of equity research and before that, a newspaper company analyst. Ms. Decker, known for her tight hold on Yahoo’s purse strings, is seen as a possible candidate to succeed Mr. Semel, now that Mr. Rosensweig is hitting the road.

Nevermind that it's the leading Internet destination, Yahoo has suffered many setbacks in recent months, including the delay of a major overhaul of its advertising system. Its problems include the growing lead that Google enjoys in searches and advertising, and an inability to compete effectively in social networking media, where companies like MySpace and YouTube have been acquired by rivals. There have been increasing reports of departures, low morale and internal complaints of a growing bureaucracy.

Does anyone think that the reorg will change anything? Seriously?

http://www.nytimes.com/2006/12/06/technology/06yahoo.html?_r=1&oref=slogin