Growing strife inside Yahoo! (YHOO) at last has erupted into a sweeping management and organizational shakeup. The moves, announced Dec. 5, expose a new urgency in the pioneering Internet portal's efforts to shore up flagging fortunes in the face of a relentless advance by rival Google (GOOG).
Yahoo said it's reordering the company into three groups, effective Jan. 1: one focused on advertisers and publishers, another on Yahoo's base of more than 500 million users, and a third on technology. Layoffs, which at least one Yahoo executive had called for, are not in the plans. Two high-profile executives, Chief Operating Officer Dan Rosensweig and Yahoo Media Group chief Lloyd Braun, will leave the company in coming months. One source says John Marcom, Yahoo's senior vice-president of international, also is out. Marcom couldn't be reached for comment. Chief Financial Officer Susan Decker has moved up to head the new advertising group, fueling speculation that she is being groomed to succeed Chief Executive Terry Semel.
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