Pros

Very smart people, with a culture of bottom's up innovation. There are still some pockets of creativity where interesting things are happening. The level of pride and company identification is very high: people take "wearing the purple" pretty seriously

Cons

The culture has decayed over the last 5 years, as the old guard has gotten complacent, then retired. Yahoo never recovered from losing the search war to google, and the company morale reflects it. Constant reorganizations and people shuffling mean that there's really no career path.

Advice to Senior Management

Stop reorganizing. Start prioritizing. Stop doing so much, start doing somethings better. Focus people on high-priority projects, and spend the time to kill off low priority projects. Start explaining what the long-term company strategy is.