Tuesday July 14, 2020

updated - July 14, 2020 Tuesday EDT

Yahoo Hires McKinsey & Co., Will Help Company Decide which Units to Shutter, Sell or Invest More

Nov 10, 2015 01:33 AM EST | By Jean-Claude Arnobit
Yahoo, McKinsey & Co.
Yahoo Hires McKinsey & Co., Will Help the Company Decide which Units to Shutter, Sell or Invest More
(Photo : Justin Sullivan | Getty Images News)

Yahoo Inc. has hired McKinsey & Co., a global management consultant firm, to help the company, people close to the situation told Re/code.

The consultant firm will help Yahoo decide on which unit will it shutter, sell or invest more in.

Sources told Re/code that McKinsey & Co. is meeting with top executives at Yahoo to begin the process of figuring out how to organize the company.

Yahoo wants its core business to be organized going forward after it completes the spinoff of its Alibaba Group asset.

Re/code adds that the move is part of Yahoo CEO Marissa Mayer's effort to turn around the turnaround she has been attempting for more than three years.

Reuters adds that Mayer has been spending more to get users on its website as it tries to revive its core media and online advertising business.

The company, though, has seen little progress with its efforts.

Reuters adds that Yahoo's revenues fell to $1 billion in the third quarter from $1.09 billion a year earlier.

The company's forecast also dropped to $920 million from $960 million in the current quarter.

Reuters adds that Yahoo has been facing stiff competition from Google and Facebook Inc., which is contributing to its struggle to boost revenues.

Sources told Re/code that Mayer has also asked her top executives to make a three to five-year commitments to Yahoo over the last month.

The sources said that Mayer told the senior staff at meetings on August and September that they have to promise, either verbally or in writing, to remain with the company.

The move, though, may have backfired as several executives have recently departed the company, according to Re/code.

European boss Dawn Airey, marketing and media head Kathy Savitt, development chief Jackie Reses and many others have left Yahoo to join other companies.

USA Today adds that Airey left to become the CEO of Getty Images in September while Savitt, who also left in September, became president of digital operations at STX Entertainment.

The most recent departure was in October when Reses left to join online payment company Square.

Re/code adds that Yahoo insiders say that at least two more people, who are reporting directly to Mayer, will also leave the company soon.

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