In a shocking turn of events, Carol Bartz has been fired from her role as Yahoo’s CEO – over the telephone!
Although the reason behind Bartz’s unceremonious departure from the company is still unclear it is being speculated that Bartz’s rocky 30 month tenure led to her firing. During this time the company had to outsource its search operations to Microsoft and shift attention to other sectors like web content offerings and personalized mobile services, which have not been very profitable.
When Bartz was hired back in 2009, she was expected to increase Yahoo’s revenue by managing its valuable Asian assets, while attempting to combat its tumbling market shares. However, since then the company has been faced with continual challenges and controversy, while its seen very little improvement (if any at all) in its market share.
As is to be expected, Bartz wasn’t impressed at being fired over the phone and sent this scathing email to Yahoo! employees:
From: “Carol Bartz”
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.
It is speculated that the major reason for her dismissal is most likely the manner in which she managed Yahoo’s stake in Alibaba Group. Yahoo! purchased a 43% stake in Alibaba back in 2005. However when, earlier this year, Alibaba Group sold off their most profitable asset, AliPay, without notifying Yahoo it didn’t end well. To add to the problems, Bartz and her management team kept the news from Yahoo shareholders for 3 weeks. As a result, investment experts labelled Carol Bartz and her team as “clueless”.
Bartz’s removal is likely to bring hope to many Yahoo shareholders. Hope that the company is set on a path of recovery. However, with a dwindling market value and search partnership with Microsoft, Yahoo has a multitude of problems to deal with. Here’s hoping interim CEO, Tim Morse, is up to the challenge.