Yahoo! (2012–2017)
On July 16, 2012, Mayer was appointed president and CEO of Yahoo!, effective the following day. She was already a member of the company's board of directors. At the time of her appointment, Yahoo's financials had been falling behind those of Google for over a year and was experiencing a high rate of turnover among CEOs, management and high-level engineers. To simplify the bureaucratic process, Mayer launched an online program called PB&J to collect employee complaints and votes on problems in the office; a problem that generated at least 50 votes would trigger an investigation by online management. Some of Mayer's management policies were criticized by The New York Times and The New Yorker.
In February 2013, Mayer oversaw a major personnel policy change at Yahoo! that required all remote-working employees to convert to in-office roles. Having worked from home toward the end of her pregnancy, and soundproofed a small space adjacent her office so that she could bring her infant son to work with her. She was consequently criticized for the ban on remote work. In April 2013, Mayer changed Yahoo!'s maternity leave policy, lengthening its time allowance and providing a cash bonus to parents. CNN noted this was in line with other Silicon Valley companies, such as Facebook and Google.
On May 20, 2013, Mayer led Yahoo! to acquire Tumblr in a $1.1 billion acquisition. In July 2013, Yahoo! reported a fall in revenues, but a rise in profits compared with the same period in the previous year. Yahoo!'s monthly web traffic surpassed that of Google in August 2013, although the companies continued to trend closely over the year. In September 2013, it was reported that the stock price of Yahoo! had doubled over the 14 months since Mayer's appointment. However, much of this growth may be attributed to Yahoo!'s stake in the Chinese e-commerce company Alibaba Group, which was acquired before Mayer's tenure. By 2016, the value of Tumblr had fallen by $230 million.
In November 2013, Mayer instituted a performance review system based on a bell curve ranking of employees, suggesting that managers rank their employees on a bell curve, with those at the low end being fired. Employees complained that some managers were viewing the process as mandatory.
In 2015, former Yahoo! editorial director Scott Ard filed a lawsuit alleging that the performance rating system was unfairly biased against male employees and resulted in his unfair firing. This case was dismissed in March 2018. In 2016, former Yahoo! employee Gregory Anderson filed a lawsuit alleging that the company’s performance management system disguised layoffs as terminations for the purpose of evading state and federal WARN Acts. Anderson's suit was dismissed in 2017.
In December 2015, Yahoo stakeholders SpringOwl and Starboard Value released statements criticizing Mayer's performance as CEO and recommending that she be replaced as CEO. By January 2016, it was further estimated that Yahoo!'s core business has been worth a negative value since December 2015. In February 2016, Mayer confirmed that Yahoo! was considering the possibility of selling its core business. In March 2017, it was reported that Mayer could receive a $23 million termination package upon the sale of Yahoo! to Verizon.
In 2017, the company's operating business was acquired by Verizon Communications for $4.48 billion. It was reported that under her contract, Mayer could receive $23 million in severance upon the sale of Yahoo! Inc. to Verizon. She announced her resignation on June 13, 2017. During her time at Yahoo!, she was paid a total of $239 million, mainly in stock and stock options.
In June of 2017, she defended former Uber CEO Travis Kalanick's response to allegations of sexual misconduct at Uber, suggesting that he might have been unaware that the company's culture had become toxic. On November 8, 2017, along with several other present and former corporate CEOs, Mayer testified before the United States Senate Committee on Commerce, Science, and Transportation regarding major state-sponsored attacks on Yahoo's data during 2013 and 2014.