Yahoo gets help on re-organisation as managers flee

rat treading waterIt seems that Yahoo is running out of ideas about how to turn itself around and has called in the bean-counters at management consulting firm McKinsey & Co to help.

McKinsey will help Yahoo decide which units to shut, sell or invest in. The search outfit is preparing to spin off its 15 percent stake in Chinese e-commerce giant Alibaba.

Yahoo has been struggling to boost revenue from ad sales in the face of stiff competition from Google, Microsoft and Facebook.

Under Chief Executive Marissa Mayer, Yahoo has been trying to revive its core media and online advertising business by spending more to get users on its websites. However not much appears to have happened.

After deducting fees paid to partner websites, Yahoo’s revenue fell to $1.0 billion in the third quarter from $1.09 billion last year, and the company forecast a drop to $920 million-$960 million in the current quarter.

Top executives at Yahoo have been asked by Mayer over the last month to make three to five-year commitments to the company.

Several top executives, including Media head Kathy Savitt and Chief Development Officer Jackie Reses, have exited in the last couple of months.

Rumours claim that at least two people reporting directly to Mayer will also to leave the company.