Yahoo needs a dramatic organizational shake-up and cuts in its work force of up to 20%, an internal memo written last month by Yahoo SVP Brad Garlinghouse, quoted by a Reuters report, said.
The Reutes report quoted Garlinghouse, a second-tier Yahoo executive who has taken increasing powerful roles in the company since joining 3 1/2 years ago, as arguing that Yahoo suffers from a lack of consistent leadership, business focus and a 'single cohesive strategy.'
'We lack a focused, cohesive vision for our company,' Garlinghouse writes. 'We want to do everything and be everything -- to everyone.'
The document was published in the Saturday edition of the Wall Street Journal.
A Yahoo spokesman confirmed the authenticity of the memo, but declined to comment directly on details contained in the memo or in the newspaper story, the Reuters report said.
The Journal story also describes rumors that COO Dan Rosensweig and CFO Sue Decker could be elevated to become co-presidents, in preparation for the retirement of Chairman and CEO Terry Semel, age 64, who joined Yahoo five years ago.
The call for restructuring follows a series of embarrassments that have caused Yahoo shares to lose 31.5% of their value so far this year. It is struggling with a slowdown in parts of its advertising business while racing to keep pace with far-faster growing rival Google, the Reuters report further said.