Ash Patel is the likely selection to run the new global products group, which will oversee search, email, and many other functions. Some executives are not fond of Patel and have expressed disappointment in the decision.  (Source: Yahoo)

Hillary Schneider will likely also share an equal leadership role with Patel in the new division. She is better liked, but some fear she's too nice for the position.  (Source: Yahoo)
Yahoo executive on reorganization: "This feels crazy."

It’s tough times on the Yahoo boat.  Employees are jumping ship, its purportedly earnest attempts to bring Microsoft back to the table were rebuffed, and a hostile takeover by investor Carl Icahn is looming.  The atmosphere among even the most seasoned of Yahoo veterans is one of uncertainty and doubt.

Losses at Yahoo are mounting as well.  Among the most recent additions to the departure list are Brad Garlinghouse, famous for his "Peanut Butter Manifesto" memo which demanded the company make a radical change of course; Vish Makhijani, general manager of Yahoo's Web search business; and Qi Lu, head engineer of Yahoo's Panama search marketing platform

Yahoo President Sue Decker announced in the Wall Street Journal that she plans to lead a company-wide reorganization of the embattled corporation.  Details on the reorganization are unclear, but it seems that it may require some positions and jobs being sent overseas as Decker states that a primary focus is providing services that appeal internationally and to centralize the accounting for such services.

The new global products group, which she will be creating, is likely going to be led by Executive Vice President Ash Patel.  The site AllThingsD reported that he already got the position.  According to the site, much of the networks division, currently under the departed Jeff Weiner, will be shifted to the new division.  This will include the search, mail, instant messenger, front page, platforms and social networking sections.

The sections, according to the report will be managed out of Yahoo HQ in Sunnyvale, Calif.  This shake-up could help to explain why communities SVP Brad Garlinghouse and Search SVP Vish Makhijani are leaving the company.

Front Door head Tapan Bhat, whose section will also be folded into global products is also considering an exit, stating that he is weighing his options.  According to one insider, some of the executives would rather quit than work with Patel, who is not popular.  The anonymous executive stated, "No one wants to report up through him.  He’s a Yahoo lifer and not the kind of dynamic leader we need."

In a slightly better received move, Global Partner Solutions EVP Hilary Schneider will now extend her oversight over the entire U.S. region.  She will be equal in position to Patel and report only to Decker.  The Yahoo Media Group under Scott Moore, who was formerly under Weiner, will now shift to Schneider.

Moore, a former Microsoft executive, is satisfied with the move, especially since he may be getting some new organizations.  However there are also reports that he is looking for startup capital, a warning sign that he might jump ship as well.  Some fear Schneider is too nice to do the job.  Says one anonymous source, "There is lot on her plate and, while she is good at the business side, she is not a products person."

The shakeups will include a number of other moves, but suffice to say that if early speculation holds true, virtually the entire company will experience shifts in leadership.  Many employees aren't happy about this.  "I am not sure right now, with all this drama and all this tension from Microsoft’s failed takeover and the rest of it, why we have to do this.  This feels crazy," said one executive.

Strangest of all, some say, is that Yahoo CEO Jerry Yang has been nowhere to be seen during the reorganization talks.  Yang, who would likely be ousted in the case of an Icahn takeover, has let Decker almost entirely lead the efforts.  One executive states, "Where’s Jerry here? He is like a ghost.  It is nerve-wracking."

Yahoo's moves clearly strike as a desperate attempt to change course.  Their effects remain to be seen, but one disturbing trouble sign is the large amount of criticism about the moves coming from Yahoo's own leadership.  If this continues, it would not be surprising to see more departures in store in coming weeks.

"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis

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