Yahoo could start the week by launching a major reorganization of the company

Internet search giant Yahoo will likely undergo another major reshuffle sometime in the next week, as Yahoo CEO Carol Bartz is looking for several new high-level executives.  The new CEO admitted there are “fundamental issues” that must be dealt with in the coming months if Yahoo is serious about competing with Google in the future.

“Get well-rested, because next week’s a biggie,” Bartz said in a memo to employees last night according to PC World.

As the company reshuffles, it is possible that Yahoo chief technology officer, Aristotle Balogh, will also become head of product, unless Bartz is able to find someone else to run the division.  Yahoo currently has three different divisions for Europe, Asia, and emerging markets, but it is likely one executive will control all three divisions, unnamed sources reported last week.

Yahoo desperately is looking for new ways to compete with Google, which has absorbed the search engine market, while also taking advertising money away from Yahoo.  Along with search advertising control dwindling to Google, the entire display advertising market has struggled because of the recession.

Bartz took over after former CEO Jerry Yang repeatedly refused the $47.5 billion Microsoft takeover offer in 2008.  Insiders say Yang’s departure was caused by numerous issues over the years, but the mistakes made in the possible Microsoft deal proved to be the final nail in the coffin.

Several Yahoo executives left the company and joined Microsoft after the deal fell through, including Microsoft’s new online services group, along with the Larry Heck, who was Yahoo’s executive of search and advertising algorithms.

Bartz understands that there is a lot of pressure on her and the rest of the company’s executives, and it’s unlikely she’ll be given a lot of leeway to make mistakes over the next 12 months.

Source: Daily Tech