Yahoo Plans Reorg: More Centralization

Confirming recent rumors of another coming reorganization, Yahoo today announced its plans to centralize many of its product and engineering teams into one regional group in the U.S., rather than maintaining separate divisions for each set of products.

Yahoo is creating three new teams that will report to President Sue Decker:

  1. An Audience Products Division will assume responsibility for companywide product strategy and product management. It will be led by Ash Patel who previously managed the company's Platforms & Infrastructure group.
  2. A U.S. region with accountability for all go-to-market activity in the U.S. will be led by Hilary Schneider, who previously headed the company's Global Partner Solutions group.
  3. An Insights Strategy team will assume responsibility for centralizing and executing a common strategy for the use of data and analysis across Yahoo. The company plans to name this group's leader within the next few weeks.

According to Decker, these moves have been in the works for several months, and complement last year's changes to centralize more of Yahoo's business.

"The changes we're making today will help deliver superior global products for users and enable faster and better decision-making," Decker said in a statement. "This is a logical next step in light of our success last year in moving to a more centralized approach to developing world-class marketing products. We have planned these changes deliberately over the past several months to clarify responsibilities and to capitalize on the scale advantages while allowing for fine tuning to meet local market needs."

Yahoo has restructured its search group, which recently lost SVP and General Manager of Search Vishal Makhijani to Russian search engine Yandex. Prabhakar Raghavan has been tapped to direct search strategy, and Tuoc Luong is the interim leader of the search product team. Both Prabhakar and Tuoc will also continue in their roles as the leaders of Yahoo! Research and Search Engineering respectively. In addition, David Ku will lead the Advertising Technology Group within Search.

Yahoo is also making changes to its technology organization, devoting resources to developing a cloud computing and storage infrastructure; moving more of Yahoo onto common platforms; and creating a stronger partnership between product and engineering teams.

The new Cloud Computing & Data Infrastructure Group will be charged with developing a computing infrastructure that balances scalability with cost effectiveness. It will also move all consumer-facing platform teams to the Audience Technology Group, led by Venkat Panchapakesan.

About the author

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.