Yahoo's chief executive Carol Bartz has been fired by the internet company after two-and-a-half years in the top job.
Carol Bartz was brought on board to change the fortunes of the search and internet company
Tim Morse, Yahoo's chief financial officer, will take over from Ms Bartz.
Yahoo has been struggling to increase its market share as it faces increased competition from rivals such as Google and Facebook.
Yahoo shares jumped more than 6% in after-hours trading after news of the firing broke, indicating they would trade higher when Wall Street opens for business on Wednesday. Yahoo's stock price was up at $13.72, an increase of 81 cents.
Mr Morse will serve as interim chief executive and the board of directors will look for a new CEO, the company said.
Ms Bartz was hired to run Yahoo in early 2009, taking over from co-founder Jerry Yang.
She made significant changes to the management team and cut jobs to save on costs. She also shifted the focus of the traditionally search-oriented firm towards more personalized content.
However, Larry Magid, a technology analyst at C-net, said the company has not seen enough of a turn-around under Ms Bartz's leadership.
"She hasn't done anything to change the company's fortunes, and they are still anxious to find a leader who can move them up," he said.
Critics also claim that Yahoo has failed to make significant strides（步幅） in two of the most lucrative（赚钱的） segments of the market; search and social networking.
"Facebook is way ahead, and now even Google is way ahead of Yahoo in social networking," C-net's Mr Magid added.