Yahoo's CEO Carol Bartz has been fired from the Internet company after two and a half years on the job. The executive broke the news herself in a short but blunt email sent to Yahoo's more than 13,000-person staff:

"I am very sad to tell you that I've just been fired over the phone by Yahoo's Chairman of the Board. It has been my pleasure to work with all of you and I wish you only the best going forward."

As news leaked to media Yahoo released its own press statement announcing a leadership re-organisation and confirming Bartz was to leave the company with immediate effect.

Bartz was hired in early 2009, replacing co-founder Jerry Yang. During her time at the helm she made considerable changes shifting the focus away from its traditional search-orientated roots, to allow it to focus on more personalized content.

Despite changes to the management team, and savings made by cutting jobs, the Board of Directors do not feel she has done enough to turn around the fortunes of the company which has failed to make an impact on crucial segments of the market – mainly the search and social networking space now dominated by Google and Facebook, respectively.

It seems investors would agree, with shares rising more than 6% after the news broke of her firing, a possible indication they could trade higher on Wall Street when it opens for business later today.

Roy Bostock, chairman of Yahoo's board, commented in the statement: "On behalf of the entire board, I want to thank Carol for her service to Yahoo during a critical time of transition in the company's history, and against a very challenging macro-economic backdrop."

Tim Morse, Yahoo's Chief Financial Officer will take over from Bartz until a replacement is hired.