CEO Plans Big Changes

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NEW YORK ( -- Yahoo!'s top executive today vowed to move the Internet portal to a more diversified business model that will decrease its overwhelming reliance on advertising revenue.

Chairman-CEO Terry Semel and other executives disclosed the company's strategies to financial analysts and the press during meetings at Yahoo!'s Sunnyvale, Calif., headquarters.

Direct marketing
Mr. Semel said Yahoo! will work to customize direct-marketing services to companies, increase consumer subscription services and offer research products.

Yahoo! on Thursday announced a deal with SBC Communications to offer high-speed DSL Internet service under the Yahoo! brand. Mr. Semel promised more deals and alliances similar to the one with SBC.

400 jobs cut
As expected, Yahoo! also announced layoffs of some 400 personnel, or 13% of its workforce, and pared its 44 business units to six. They are: listings, commerce, communications, media, access and enterprise.

Mr. Semel said that in the next three years he wants revenues derived from advertising to be just 50% of the company's mix. By year-end 2001, he said advertising will compose 76% of the company's total revenue.

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