SAN FRANCISCO (AP) -- Yahoo Inc. fired Carol Bartz as CEO Tuesday after more than 2 1/2 years of financial lethargy that had convinced investors that she wouldn't be able to steer the Internet company to a long-promised turnaround.
To fill the void, Yahoo's board named Tim Morse, its chief financial officer, as interim CEO. Bartz lured Morse away from computer chip maker Altera Corp. two years ago to help her cuts costs. Yahoo, based in Sunnyvale, Calif., said it is looking for a permanent replacement.
The shake-up was initially reported by the All Things D technology blog.
Bartz's austerity campaign has helped boost Yahoo's earnings, but the company didn't increase its revenue under her leadership at a time when the Internet ad market has been growing.
Bartz's inability to snap Yahoo's financial funk, along with recent setbacks in an online search partnership with Microsoft Corp. and an investment in Chinese Internet giant Alibaba Group, proved to be her downfall.
Yahoo has now replaced three CEOs in a little over four years.