Yahoo internal memo warns on staffing

Yahoo needs a major shake up and should cut its staff by up to 20% if it is to compete with rivals, a leaked management memo has warned.

The internal memo from Yahoo senior vice-president, Brad Garlinghouse, says the search engine giant lacks leadership and a strategic vision.

“We lack a focused, cohesive vision for our company. We want to do everything and be everything - to everyone,” the memo, leaked to the Wall Street Journal, says.

It calls for a “radical reorganisation”, with cuts of 15% to 20% in the workforce and changes to the current business unit structure to eliminate duplication of work.

“There are so many people in charge (or believe that they are in charge) that it's not clear if anyone is in charge,” the memo says. It argues that “heads must roll” and that “change is needed and it is needed soon”.

The memo has been dubbed “the peanut butter manifesto”, because it argues that Yahoo has spread its investment too thinly.

In a statement, Yahoo said the memo “highlights that we have an open, collaborative culture and a senior management team that is intensely committed to helping Yahoo fulfill its potential as an internet leader”.

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