Brad Garlinghouse’s (a Yahoo senior vice president) internal memo was leaked to the press. It does a lot of damage to the company without a doubt. The outside world has expressed deep concerns about Yahoo in general of late (as reflected in its stock price). This memo just confirms that these concerns are most valid.
The first thing Yahoo should do is to investigate and identify the source of the leak. Its completely stupid to leak this memo. Its hard to believe that Brad did it himself (as some in the blogosphere folks claim).