Yahoo CEO Seeks Executive Shakeup, Rumors Suggest

New Yahoo! Inc. CEO Carol Bartz is already looking to put her stamp on the much-maligned search company only a month after she replaced previous chief Jerry Yang.

According to reports, Bartz is currently searching for a number of upper-level executives as she shuffles Yahoo's management and pursues new strategies for winning back surfer approval.

Bartz, former CEO of Autodesk Inc. (an architecture and engineering software company), has a lot of work ahead of her. She replaced Yang last month after Yahoo's former CEO reportedly blew a $47.5 billion takeover deal that would have seen Microsoft acquire the company. Yang vacillated on the deal many times before it was finally put to bed. After the dust had settled, Yahoo posted a catastrophic fourth quarter loss of some $303.4 million, with profits falling in ten of the previous eleven prior quarters.

Tough road ahead for Bartz, Yahoo

Yahoo also faces elevated competition from industry giant Google, who have recently expanded their production of graphical-display advertisements. Even Microsoft, who once tried so hard to etch out a partnership with Yahoo, is chomping away at the company. The Redmond-based firm has hired several former Yahoo executives since late fall.

There was also the announcement that Chief Communications Office Jill Nash was on her way out after two years with the company, while president Susan Decker announced her departure after Bartz was named CEO last month.

Thus, with some major talent gone to its competitors, Yahoo and Bartz face the issue of re-filling their roster. It's unclear at this point if Bartz will follow the tactical approach of Yang, who last year reorganized the company's executive level so that three teams would all report to former president Decker. Insiders felt that this helped create better flow in consumer-product development and opened a strategy group the entire company could contribute to. (Source: bloomberg.com)

"Rumors and speculation..."

Thus far, Yahoo is remaining mum on the rumored shakeup. Although it's expected that the company will announce the reorganization in the coming week, Yahoo spokesman Brad Williams has refused to offer any comment on something he referred to as mere "rumors and speculation." At this time, our best indication that something big might be in the works came from a leaked memo written by Bartz herself, which reportedly stated "Get well-rested, because next week's a biggie." (Source: reuters.com)

It's also unclear if the whispers helped Yahoo's stock, which shot up about 16 cents to $12.14 on Friday. (Source: bloomberg.com)