Here it is, the internal memo to Yahoo staff about the sudden — though it was not sudden, by any means — leave-taking today of its COO, Henrique De Castro, courtesy of one of my 10,563 sources left at Yahoo!

In it, Yahoo CEO Marissa Mayer makes clear she dumped the former Google exec, whom she had once effusively praised.

Earlier today, I noted that De Castro was shown the door, and Mayer said the same in her email.

Referring to the beginning of the year, she wrote to staffers: “During my own reflection, I made the difficult decision that our COO, Henrique de Castro, should leave the company. I appreciate Henrique’s contributions and wish him the best in his future endeavors.”

In other words: I am going to try to appear honest and forthright here, hoping it will make people forget that I did the hiring, I paid him too much and I did not act sooner when it was clear that it was not working out. (De Castro is even making out like a bandit upon being bounced, with a giant payday.)

What refreshing candor! (Modified kudos, I guess, but was there a choice?)

Now, pretty much everyone is reporting to Mayer, according to her info about the new management shifts. And, after much knife-in-back machinating for months against him, CMO Kathy Savitt finally wrests the media unit from De Castro’s cold, um, you know, hands.

Oh, just read the memo:

YAHOO PROPRIETARY AND CONFIDENTIAL — DO NOT FORWARD

The beginning of a new year always provides time for reflection. As we enter 2014, I couldn’t be more proud of what Yahoo accomplished in 2013 or more optimistic about what we’ll accomplish in 2014. I want to thank all of you for being so engaged and so thoughtful around the direction of the company.

During my own reflection, I made the difficult decision that our COO, Henrique de Castro, should leave the company. I appreciate Henrique’s contributions and wish him the best in his future endeavors.

Effective today, we will restructure the leadership of the operating organization as follows:

– Dawn Airey, John Devine, Ned Brody, and Rose Tsou will report directly to me.

– I’ve asked Kathy Savitt to lead our media and editorial functions.

– Several functions in the COO org align well with product initiatives in Mike Kern’s Homepages & Verticals group and will report there moving forward.

We’ll reach out to specific individuals on reporting changes. As always, there may be further changes to increase alignment and sharpen our media and product focus; those changes will be messaged within the affected groups.

Overall, I am confident that the leadership team, our direction, and these changes will enable even more successful execution. Thank you for your patience and understanding as we work through these changes.

Marissa



22 comments
Debby
Debby

If you think about it, if each average Yahoo employee made 100K a year, this guy was worth 400 Yahoo employees by himself.  I can't imagine in what world 400 employees and smart people are worth ONE man's brain.  You could have hired 100 people to do his job at 25% of the cost and had 100 more brilliant minds working on finding new ideas.  His paycheck was obscene, his lack of work for said paycheck is obscene, and the disparity in pay between people who LEAD the work and actually PRODUCE the work is obscene... disgusting!

MonkeyBusiness
MonkeyBusiness

De Castro was a clown. He didn't understand sales. He didn't move his butt from Sunnyvale. He made no effort to listen to his team or understand the problems. 


That said, Marissa is smart to let him go. If she didn't, the lacklustre sales performance would have been her problem. Now, she has another year to live on hope and hype of foolish investors. 

Saurabh
Saurabh

Yahoo belongs to history now. MM should realise that till the time Y! comes up with something innovative, no matter how many De Castros she fires, the ship will keep on sinking.

SilverFish
SilverFish

Tsk tsk...yo 10,563 (10,562 with jai singh gone) , no purple kittens for another year. Pogue 0; Kara 1...who gives $h!t about tech review. Maybe Pogue should start writing about what's happening in his own company. Given the hr fiascos wonder when Reese gets her day of reckoning. Oh wait she is MM's robot...she gets 9 lives.

Bahmani
Bahmani

Consider this: ANY housecleaning at Yahoo these days is GOOD Housecleaning. Someone has to pay for the past debacle years, and even if Henrique (is that even a name? Come on! Henrik, Henry, or Hank!) was faultless (highly doubtful), it is a good sacrifice fly (ie flea), and sends a nice signal shot across the bows of every single mediocre manager at Yahoo who knows who they are. And what they have done.


Hear Hear to Melissa, for taking the reins and serving up notice. Now watch how everyone comes to work hair brushed and teeth combed, arrives early and leaves late.


The days of wine and cheesey performance are over.


Good riddance to bad rubbish I say.


(Now can I get a job?) 

youcanspellthis
youcanspellthis

 ahahhaha


"DO NOT FORWARD"


well, we see how much THAT rule was obeyed..

kurtpimentel
kurtpimentel

I find it funny how folks ridicule MM or any leader behind the anonymity of a keyboard.  If you have something to say don't be afraid and use dumb screen names.  


MM only issue is getting the right person in place for media sales (Yahoo! hasn't had the right person in this spot for a while) as well as getting out of the real sinking ship of BING partnership.  Folks, you have more search companies than you shake a stick at and more coming.  I believe that Yahoo! has a better business model than FB, Twitter, Snap, etc. combined.  The three before mention companies are aggregators of contacts (think big rolodex) and that rolodex is used to target a potential consumers.  In Yahoo! you have true content that people read or participate in (think fantasy sports) that you don't get with the social media companies (no I don't count Google as social media).  


Okay of the rant, need more coffee...  

WRE
WRE

All media and editorial functions will now be led by the head of marketing and branding? Every person who left the New York Times for Yahoo just shuddered.

JMWJMW
JMWJMW

She really should learn how to send out versions of these memos with slight textual differences so over time, she can learn which of Kara's 10,563 sources are forwarding

DJP
DJP

MM - silly young upstart ex Goolger throwing around unqualified and unquantyfied weight. Shareholders get out. Yahoo is the longest sinking corporate ship in history. Marissa De Caprio good luck. For F's sake - she is a UX designer - not an experienced CEO commanding a company with 10000+ employees! Hype hype and more hype. She's cashing in on the retarded board stupid enough to pay her a huge salary for her name alone (not what she can do. Focus on mobile? Bollocks!

drfisheye
drfisheye

It's refreshing to have a CEO writing a clear letter, without a communications team intervening.


It also shows that having a communications team isn't a bad idea after all.

SilverFish
SilverFish

@kurtpimentelCall it rolodex or anything else you want. They are generating money. Yahoo is not. What MM is doing can be described as Ford trying to copy Toyota's operational tactics like Kanban and Zero Inventory while forgetting their mantra of Super Fuel Economy Cars That Run Forever! With Free food, Gmail like Yahoo mail, etc, she is still copying the tactics.

Ismael
Ismael

@kurtpimentelwhen aggregators can do better and outperform (or at least that being the perception) then that shows you what a terrible job Yahoo! is doing and what an awful job is MM as a leader (if you can call it that).

I have been saying all along that this woman is way above her head/game/wildest dreams.

You need a cerebral and highly calculative person to turn around MM (note I made it easy by not mentioning creativity, leadership,visionary,...).

Yes, please,get dressed up and let's meet at 1pm, same Starbucks :)

Bahmani
Bahmani

@Biomystic  Please do not confuse Steve's BioMystics with the Christian belief system known as BioMystics, or BioMystic the highly effective odor eliminator and deep cleaner used in vet clinics, garbage trucks, hospitals, outhouses, and rank air conditioning systems. 


Steve's BioMystic Systems is completely different and much better than those established product names.


As soon as Steve can figure out how to get off HotMail and get on Gmail, you'll see. You'll ALL see...

GTTRD
GTTRD

@Biomystic  


Ahahahahah... So, if I paraphrase:
Hi guys, I'm nobody and this or that bigwig is stupid. I'm not biased, I have proof:1- I'm a genius. I had a concept in my head 3 years ago.     
2- It's still nothing more after 3 years and many others, including Google, made it a reality since, but Yahoo needs me badly.     
3- Yahoo is stupid. When I tell them I'm a genius they don't let me meet Mayer just because I have nothing to prove it.     
4- Also, in 3 years spent not realizing my concept, I've had THREE more ideas. Can you imagine that? Ain't that the proof Yahoo is stupid? THREE!!! Wow! And one of them is really good too, I just need someone to do all the actual work.     
5- Of course, everyone with a really sound project goes VC before expecting the biggest guys to get interested. Background noise level and all. I don't have VC, it's still just a concept after 3 years. But I'm a genius and Marrissa is dumb.     
6- Yeah I know, I don't even have a Wordpress website but I don't have two hours, too busy being a genius and explaining Yahoo is stupid     
7- Actually I don't even have a domain name to have a sound email address, but bite me, it costs $10 and takes 10 minutes. Don't ask for too much of me, just push me through to Meyer     
See? That's so completely on topic with De Castro firing.. Told you I was a genius.(And I got Concepts in me brain I tell you).

RS9
RS9

@CS70 Not really Kathy doesn't have revenue goals and more over she belongs to MM's inside circle. 

RS9
RS9

@DJP I second your thoughts. All Marissa did is hype hype honestly she hasn't released a single meaningful product. 400M mobile users (she is counting all the iOS apps that are powered by Yahoo! data) but Yahoo! doesn't make much money on it. Secondly Android mail app is the only one that has more than 2M active users. I hope wall street gets the true picture of Yahoo! 

JMWJMW
JMWJMW

@GTTRD And, as the "topper" then, he puts in his "company's" name.  Fire-Ready-Aim.
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