Embattled Yahoo CEO, Carol Bartz, has been fired from her position with over a year remaining on her contract.
Calling it a “leadership reorganization” in its official statement, Yahoo said it was replacing Carol Bartz with Chief Financial Officer, Timothy Morse, who will act as interim CEO. Morse will be helped out by a newly formed Executive Leadership Council in the day-to-day running of the business while a permanent successor is found.
Bartz was informed of the decision over the phone by Yahoo chairman Roy Bostock, which ended a two-and-a-half-year tenure marked by stagnation and in-fighting with its Chinese partner Alibaba.
In May it was revealed that Alibaba had handed Alipay – one of Alibaba's crown jewels – to a company controlled by Alibaba founder Jack Ma, apparently without Yahoo's – and Bartz’s - knowledge. In July the company reported falling revenue despite growing profits.
Bartz emailed Yahoo employees to inform them of the decision, but as is the way with such things, the email was leaked. She said: "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."
Bartz was brought in to try and turn around the internet giant but she failed to make significant ground on Yahoo’s main rivals, Google and Facebook.
Investors obviously welcomed the news of the firing, as in after-hours' trading the company’s shares jumped 6 per cent to $13.72, up from $12.91 at close. Yahoo’s share price when Bartz joined was $12, a world away from the share price of $125 at the turn of the century.
In a statement Bostock said: "On behalf of the entire Board, I want to thank Carol for her service to Yahoo! during a critical time of transition in the Company's history, and against a very challenging macro-economic backdrop. I would also like to express the Board's appreciation to Tim and thank him for accepting this important role. We have great confidence in his abilities and in those of the other executives who have been named to the Executive Leadership Council."