Did Yahoo! Inc. (YHOO)’s Marissa Mayer Generate More Than Splashy Headlines in Year 1?

In addition to announcing many takeovers, Mayer has shaped Yahoo! Inc. (NASDAQ:YHOO) in another key way. She has chopped 1,000 jobs in her first year, through a combination of attrition, and tougher performance requirements. She also said that there are 10 times that number of new applicants streaming in each week, the Silicon Valley Business Journal reported.

There were 15,000 full-time employees, and 3,000 part-timers, when she arrived. As of its latest SEC filing, the company had 11,300 full-time staffers.

Mayer can take comfort that she has won over a key constituent: the company’s shareholders. They certainly should have no complaints about Mayer’s aggressive management style. Since Mayer arrived a year ago, Yahoo!’s stock is up 63% compared with a 20% gain from the benchmark S&P 500 index.

Say this for Mayer. Her incarnation of Yahoo! Inc. (NASDAQ:YHOO) now represents one of the most fascinating stories unfolding in Silicon Valley — no small feat in itself. And yes, Mayer has succeeded in creating excitement.

But the real question is whether she can conjure up long-term value, too.

Fool contributor Jon Friedman has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google.

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