YAHOO boss Carol Bartz has been fired as the firm’s chief executive officer (CEO) after the ailing Internet firm lost further ground to rival Google.
Bartz, who was axed by phone, has had a rocky tenure lasting nearly three years punctuated by stagnating growth and a bitter row with one of the firm’s Chinese partners.
The 63-year-old CEO, who was hired despite lack of Internet or advertising experience, told Yahoo employees that she was fired by chairman the Yahoo of board Roy Bostock.
Most recently, Yahoo settled a payment dispute with China’s Alibaba Group, in which Yahoo holds a 40 per cent stake.
Bartz has also had to watch as Yahoo loses further ground as an Internet domain to all- conquering Google, while also facing strong competition from other social networks such as Facebook.
She announced her departure to employees via a two- sentence email from her iPad which read, “I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s chairman of the board. It has been my pleasure to work with all of you and I wish you only the best going forward.” The California- based company has appointed chief financial officer (CFO) Timothy Morse as CEO on an interim basis, but plans to search for a permanent replacement for Bartz.
|Jan 2009: Bartz appointed Yahoo CEO, replacing co-founder Jerry Yang, who resigned under pressure from investors after rejecting a Microsoft takeover bid|
|July 2009: Yahoo and Microsoft seal ten- year search engine merger deal in attempt to rival Google|
|April 2010: Bartz admits she, along with 100 other executives at Yahoo, “could have done better”|
|Sept 2010: Yahoo’s revenue growth for the first nine months of year is 11 times less than that of Google|
|Dec 2010: The firm’s poor financial growth forces Bartz to lay off between 600 and 700 employees|
|Feb 2011: Yahoo is valued at around $22.11 bn, while Google is worth $169.38 bn|
|May 2011: Row between Yahoo and Chinese partner Alibaba sees U.S. firm lose part of its 40 per stake in Asian company|
At its peak in 2000, Yahoo shares traded for $ 125. Last night they closed at $ 12.91.
Yahoo lost further ground in the race against Google during Bartz’s tenure, despite actually making more money through layoffs, service closures and other cost- cutting moves.
Last year Yahoo’s revenue edged up by just two per cent in the first nine months of the year, while Google’s climbed by 23 per cent in the same period.
In April the same year, the straight- talking boss candidly admitted that she “could have done better” in her job, by which time speculation around her position was already growing.
The firm was forced to lay off more than 600 staff — around five per cent of its total workforce — last year due to lacklustre growth.
Article Credits: Mail Today