"We plan to drive growth and profitability by leveraging our deep audience insights to create a full-fledged advertising network," [CEO Terry] Semel said.See also my earlier post, "Yahoo's troubles", where I said, "The business is advertising ... To fail to compete on advertising is to fail."
[CTO] Farzad Nazem will be pressed to speed development of the company's delayed next-generation advertising software.
Analysts believe one of the chief reasons behind Yahoo's current woes is its failure to deploy software that could prioritize the placement of the most lucrative ads on its Internet properties.
During the past year, Yahoo's financial performance has repeatedly disappointed investors who have sent its stock price plunging more than 35 percent.
See also Om Malik's harsher comments on the reorg. By the way, I kind of like the mission Om gave for Yahoo at the end of his post, to organize all "relevant information". That captures the importance of helping people focus their attention on useful information rather than making all information accessible.
See also my earlier post, "Yahoo peanut butter memo".