Tomahawk, WI 01/23/2014 (BasicsMedia) – Henrique de Castro, Yahoo! Inc. (NASDAQ:YHOO)’s Chief Operating Officer, will no longer be working for the company, after offering his services here for the last 14 months. The company’s Chief Executive Officer, Marissa Mayer, says Henrique failed to guide Yahoo towards the path of growth as he had promised. In other quarters, there are claims to the effect that the two officers were unable to see eye-to-eye or agree on many issues for close to 6 months. It is worth pointing out that Marissa has been at the helm of Yahoo since June 2012.

Marissa Continues With Revamping Efforts at Yahoo! Inc

When Marissa took the reins at Yahoo, she immediately embarked on a process that would lead to revamping of the company, which had lost its place to rivals such as Google. Yahoo cannot compete with Google or Facebook in terms of number of users and revenue from advertisements. Marissa’s brief had been to return Yahoo to a level where it would win back some of its market share that it lost to not only Google and Facebook, but also many other Internet giants. It embarked on redesigning its email, investing in various start-ups, and on new products.

The financials that Wall Street analysts have looked at indicate that YHOO saw its revenues drop by around 1% in the 2013 financial year. However, the same financials show that the company can enjoy gains in its revenues of up to 3 percent in 2014, which will possibly go beyond this financial year and into 2015. However, there is a lot of concern about the decision to fire Henrique, bearing in mind that his position is yet to be filled. Who will assume his former responsibilities until they get a good and experienced professional to take over from Henrique?

Henrique is Marissa’s First High-Profile Sacking

Marissa recruited and has now fired Henrique. It is the first of such acts by Mayer since she took charge of this one-time Internet giant. The laying off took place immediately, and this means Yahoo now has to look for someone different to assume Henrique’s responsibilities, and see whether it is possible to turn the fortunes of this struggling company around. Investors are concerned that this needs to be carried out quickly, without causing interruptions of any sort. It is important that there is a smooth transition lest Yahoo finds itself in a huge financial quagmire.

The huge changes taking place at Yahoo come amid reports that the company intends to place a bid for AOL. Similarly, there are reports to the effect that Yahoo will continue investing in new acquisitions as well as fresh talent to see an upsurge in traffic, which will help it turn its dire situation around, and make this company as viable as its fellow Internet giants such as Facebook and Google. Some of its fresh and newly acquired talent talk of making the company’s website more compelling and attractive than it has ever been since its creation.

Although the laying off of Henrique could be counterproductive in the short-term, there are hopes that this decision could benefit Yahoo! Inc over the long run.

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