Resume Padding Controversy, Cancer Diagnosis Forces Yahoo CEO to Resign

Amidst a storm of controversy surrounding an allegedly padded resume, Yahoo CEO Scott Thompson has decided to resign. Before departing Thompson added that he has been diagnosed with thyroid cancer.

Although he’d only been at Yahoo’s helm since January, Thompson had already made a splash as company CEO. In April he announced a massive restructuring plan that called for the termination of more than one thousand employees. The program is part of Yahoo’s ongoing campaign to revive its flagging profits.

Unfortunately for Thompson, he won’t get the chance to follow up on his restructuring work. Last week it was revealed that Thompson added a computer science degree to his resume, even though he only earned a bachelor of science in business administration while attending Stonehill College in Massachusetts.

Although he reportedly spent much of last week trying to calm the storm, calls for his resignation by major investor David Loeb forced Thompson to leave his lofty position. He’ll be replaced by former News Corp. web services leader Ross Levinsohn, who joined Yahoo in November 2010.

Aside from replacing Thompson, Yahoo will also undergo a major shakeup of its board of directors, reports suggest.

In a note to the media on Sunday Levinsohn insisted that the changes would be to Yahoo’s benefit. “In spite of the very bumpy road we’ve traveled, we are achieving genuine and meaningful successes in the marketplace every day and heading in the right direction,” Levinsohn said.

However, analysts aren’t convinced Yahoo is yet on the right track. “Yahoo has been floundering for years and it looks like there is going to at least several more months of indirection now that another CEO is coming in,” noted industry consultant, Adam Hanft.

As if the situation wasn’t dramatic enough, new reports suggest that Thompson may be fighting thyroid cancer, and that this significantly contributed to his decision to resign.

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