Over the past years, Yahoo has been dealing with multiple issues and currently, they’re looking forward to start a reorganization plan. According to USA Today, the company has hired global management consultant firm McKinsey and Company, in order to help them decide which sectors need shuttering, which needs investments and which should be sold.
This move is required, as Yahoo‘s spinoff their stake in Chinese retailer Alibaba is ready to be completed, but we still need to wait until January. Multiple sources are claiming that the representatives of the consulting firm met with top execs, in order to figure out how to organize the core business, in order to start going forward.
When contacted, representatives of McKinsey refused to comment, spokeswoman Steffi Langer mentioning the firm’s “long-standing practice not to talk about or comment on our client work.”
Also, this is most likely a part of CEO Marissa Mayer’s efforts to turn around the turnaround she has been attempting for the past three years, when she was appointed in the current function. Three weeks ago, Yahoo reported a loss of $86 million for Q3 of 2015, so Mayer is definitely dealing with issue on multiple fronts.
Currently, Yahoo’s main source of income, and in the same time core, is its advertising business. Over the last month, Marissa Mayer wanted her top execs to put down a three-to-five-year commitments to Yahoo, but the move apparently backfired, resulting in a couple of major departures.
Finally, the company was planning to launch a new project called Index, but its launch might be delayed, even though it’s supposed to be a critical product for Yahoo, orienting them towards the development of their search engine.
This is where McKinsey comes in, as their main purpose is to organize Yahoo in such way and make sure that all their resources will be correctly targeted to Index.