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Yahoo Inc. has been losing out in terms of business. A lot of their human capital has been making an exodus, with many of their top executives already having moved on. In 2013, Yahoo hired the services of McKinsey & Co, a global management consulting company, to assist them with the decision on what units the company should shut down. There have even been reports of the CEO, Marissa Mayer, attempting to convince the more important employees at the company to accept long term commitments at Yahoo. Google, Snapchat, and VMWare have all been making headlines in the last year for a mass-exodus of key staff. But these companies had strategies thatrapidlyclarified themselves. Snapchat cut the chord on its original programming, with Google announcing a collaboration with Whole Foods and EMC merging with Dell.
According to Roger McNamee, who is co-founder of Elevation Partners, “Yahoo’s situation has been very difficult for a decade. There’s a classic problem you see in management… have to buy it, because it takes too long to create something from new and they want to have immediate impact. At this point, there’s nothing they can do to salvage this situation.”
Yahoo may be able to make a return, but increasingly, pundits are questioning if it is lacking a key component: Human capital. At least twelve executive level staff have gone away from the company this year, eight more than the number from last year, according to SunTrust Robinson. The resignations included Chief of Information Security Alex Stamos, Chief Development Officer Jackie Reses, CIO Mike Kail and CMO Kathy Savitt, according to the same source. Yahoo is not the first massive technology company to worry investors with executive resignations. But Yahoo’s changes may be more significant than the rest, because checkup-ups over the top-level staff may make a reordering and restructuring harder.
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