Yahoo is reorganising and hopes to improve its service to consumers and advertisers.
The move comes after Yahoo recently signed a web advertising and technology deal with Google, which had followed failed acquisition and alternative partnership talks with Microsoft.
Yahoo will centralise consumer product development to improve its ability to release products worldwide. It will also create a standalone US region for bringing products to market for users, advertisers and publishers.
There is also the formation of an Insights Strategy team, and enhancements to the technology infrastructure to optimise the use of data and improve coordination between product and engineering teams.
"These moves accelerate the ability of our deep and talented team to build great products, grow our audiences and improve monetisation globally," said Jerry Yang, Yahoo CEO.
"They are designed to put us in an even better position to leverage our leading global audience and capture the opportunity we see in the convergence of search and display advertising."
There will be three new teams reporting to Yahoo president Sue Decker. An Audience Products Division will assume responsibility for company-wide product strategy and product management.
Principal changes are developing a new cloud computing and storage infrastructure, "rewiring" Yahoo onto common platforms, and creating a stronger partnership between product and engineering teams.
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