Yahoo! Fires The Wrong People (YHOO)

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Yahoo! will moves its CFO up the ladder putting her in charge of critical functions like ad sales. The company’s COO and other top brass will leave. The move is surprisingly similar to one suggested in a memo widely circulated by the press a month ago. The document, written by a senior Yahoo! manager, urged the company to streamline, focus, and downsize its staff.

The problem with the move is that the CEO, Terry Semel, stays in place. The demise of the company’s stock price has happened on his watch. It has dropped from $43 earlier this years to $26. Wall St. has to wonder why the move did not come earlier and why the board decided to keep the company’s chief.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own shares in companies that he writes about.