Yahoo Turns To McKinsey For Re-organization
Yahoo Inc. has hired McKinsey & Co. to help with reorganisation, several sources close to the matter told Recode. The consulting firm will help Yahoo to decide which units to close, sell and invest more in.
According to Business Insider, in last month's third-quarter earnings statement, Mayer said: "As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability”.
Sources told Recode that McKinsey officials were meeting Yahoo’s top executives to initiate the process of determining how to reorganize the core business of the latter going forward.
For over three years now, CEO Marissa Mayer has been trying to revive the company which faces stiff competition from prominent industry leaders such as Google. Sources told the technology news website that recently Mayer also asked company top execs to make 3-t0-5 year commitment to Yahoo, either verbally or in written.
However, the move was rather ineffective as the tech giant witnessed major departures, including European boss Dawn Airey, marketing and media head Kathy Savitt, and many others. Sources also told Recode that at least two others reporting directly to Mayer are expected to leave soon.
Fortune reported that the news comes as Yahoo is preparing to spin off its 15 percent stake in Alibaba Group Holding Ltd, the China-based e-commerce giant and a disappointing quarter.