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Google forces Yahoo restructuring

As Yahoo continues to trail Google, it has announced a shake-up of its corporate structure.

Chief executive Terry Semel said in a statement that the struggling web portal, which has seen a stock price slump of nearly 33 per cent this year, will be rearranging the way the entire company is run.

"The internet is continuing to grow and evolve at a rapid pace, and we are reshaping Yahoo to be a leader in this transformation," said Semel.

Rumblings of an impending shake up at Yahoo began nearly three weeks ago, when The Wall Street Journal obtained a memo authored by Yahoo executive Brad Garlinghouse.

Garlinghouse argued in the memo that the company was spreading its forces too thin, likening Yahoo's business model to peanut butter spread thinly on a slice of bread.

He recommended that the company should restructure and cut up to 20 per cent of its workforce. 

In a posting to Yahoo's Yodel Anecdotal blog, Semel claimed that the restructuring had nothing to do with the Garlinghouse memo.

"We have been orchestrating this plan for a number of months as we envisioned the next phase of growth for the internet," he said.

Semel's own conclusion, however, greatly reflects the thoughts expressed by Garlinghouse, which called for stricter management and a clearer business focus.

"We need a revitalised structure to heighten accountability and streamline decision-making while allowing us to better focus on serving our key customers, " wrote Semel.

Our statistic certainly inidicate Yahoo market share slipping. Fresh Egg client sites consistently see larger volumes of traffic arrive from Google as against Yahoo or MSN. We have may sites that feature top results in both Yahoo and MSN, but it is only when a site gains a top ranking in Google that things begin to happen.

Does that mean that we should all place our eggs in the Google basket?

Certalinly not, the world of search is fickle. Although Google seemingly is this invincible all-conquering beast of a search engine, fashions change, habits change, people change.


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