Search Given Second Chance in Yahoo! Re-Organization

Rene LeMerle By Rene LeMerle
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One week after cutting around 14% of Yahoos workforce, CEO Scott Thompson unveiled his future plans for the company in a staff memo and its good news for search.

His plan? To launch a major internal restructure of the company that will streamline and pull the company out of its financial slump.

“I want every one of us to keep one thing in top of the mind: what we do is about our customers, not about us.”

Thompson revealed that Yahoo will shut down about 50 properties that dont contribute to the companys core interest and will instead now focus on its consumer groups sprawled over Yahoos large network of news, e-commerce and social sites. Other restructuring moves include ramped-up technology and sales groups. Yahoo will be split into three main groups; Consumer, Regions and Technology.

The Consumer group will further be broken into three groups; Media, Connections & Commerce and Yahoo Search. Senior VP Shashi Seth will lead this unit comprised of Yahoo properties including Mail, Messenger, Flickr, and Answers and the main priority for Shashi and his team will be to understand how the present day users search and communicate data online.

The second important unit under the Consumer group will include Yahoos homepage, News, Finance, Sports, and Entertainment and the third unit Commerce will be responsible for driving higher ROI for advertisers and agencies. Properties like autos, shopping, travel, jobs, personals, and real estate will live in this unit.

The Regions Group will focus on advertisers and agencies in the three geographical regions; the Americas, Asia-Pacific, and Europe, the Middle East and Africa whereas the Technology group will accommodate core platforms such as Analytics, CORE, Yahoo Labs, and data center and cloud infrastructure.

The changes will come into effect May 1st.

After seeing a constant drop in its US search market shares in the past six months (last month being the lowest point ever where figures dropped to 13.7%), Thompson is attempting to do what his recent predecessors failed to do: redefine what Yahoo actually is.

Heres hoping this restructure actually produces the results the company needs in order to survive!

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About Rene LeMerle
Rene is the marketing manager of ineedhits.com - a global search engine marketing company. He also leads the marketing for Gooruze.com - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

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