Roughly 700 million users visit a Yahoo website every month - putting it in the top ranks globally. But the amount of activity people engage in on many sites is steadily declining, and its smartphone offerings are deemed lackluster.
"The largest change is to be deadly serious about mobile," said a former Yahoo manager who remains in touch with people at the company.
Yahoo faces tough competition from Facebook and Google, two companies that have taken consumers' time, engineering talent and market value from Yahoo. They are also trying to make the transition to mobile, but it has been difficult.