Advertising operations at Yahoo will now be undertaken by a new unit, called the Global Partner Division.
President of the internet giant Susan Decker is behind the shake-up, which will see the firm's head of sales Gregory Coleman depart early next year.
Instead, the new unit will be led by Hillary Schneider who previously headed up Yahoo's local markets business.
It is hoped that the new division will streamline the business with the aim of boosting the firm's advertising performance, and it will cover advertising activities including search.
"We will be able to much more quickly identify and secure the ad inventory that best meets our advertisers' objectives," Ms Decker said in a company memo.
Former chief executive of Yahoo, Terry Semel, left the company earlier this year and was replaced by Jerry Yang, a co-founder.
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