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Bartz Preparing Yahoo Reorg

Yahoo CEO Carol Bartz today begins the first of a crucial two-day summit with the company's top managers, who have been brought to Yahoo's Sunnyvale, Calif. campus to talk about Yahoo's future. Sources tell Kara Swisher that Bartz is preparing to unveil a new organizational structure, but she has not informed Yahoo senior staff about the pending changes. Bartz, it is believed, thinks the company is still too overstaffed, and needs to get "leaner and meaner."

Prior to today, Bartz has been floating from meeting to meeting in her first month in charge, asking very pointed questions with little or no entourage, except for her executive assistant, Judy Flores. "Wherever Carol goes, Judy goes," says one exec. "But that's it." She asks a lot of questions, and "she is asking the right ones, although the tone is much more tough than employees are used to," the exec added.

Added another: "She doesn't seem to know the current state of the Internet business that well, but she does know how to whip a company into shape. It can be a little disconcerting for those Web heads at the company to get that kind of scrutiny." At a recent meeting, for example, one source said Bartz went around the room and asked each exec what they did. She said two execs were a "two in one box," meaning they did the same thing, and it wasn't until going around the room that she found someone who actually made the company money. "Finally, revenue," Bartz joked.

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