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Yahoo reorganises to improve communication

So that's why execs are leaving...

Yahoo is planning a reorganisation to improve communication among staff.

Yahoo is planning to reorganise its business to centralise its numerous product groups, the Wall Street Journal reported yesterday, citing unnamed people familiar with the matter.

The goal is to improve communication between Yahoo's various divisions, including mail, search, and home page, with overseas sales staff, the paper said. The reorganisation is being pushed by Susan Decker, president of Yahoo.

The planned reorganisation comes after a failed bid by Microsoft to take over Yahoo and is a key reason some executives have recently decided to leave Yahoo, the Journal said.

Several executives have reportedly made plans to leave Yahoo, according to various news organisations.

Microsoft proposed to buy Yahoo earlier this year in a deal worth as much as $47.5bn, but Yahoo said the bid was too low. Ultimately, Microsoft withdrew its offer. But some Yahoo investors have sued Yahoo over the failed deal and one, Carl Icahn is trying to win places for some new people on Yahoo's board of directors.

Yahoo shareholders will vote on a new board at the company's August 1 shareholders meeting.

The reported reorganisation comes almost a year to the day after Yahoo handed co-founder Jerry Yang the CEO title and named Decker the new president.

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