As part of the restructuring Yahoo will be reshuffling the top management ranks amid growing criticism in and outside the company that it had become too bureaucratic to compete effectively against nimbler rivals.

Dan Rosensweig will step down as chief operating officer in march of next year and the company will be divided into three groups, one devoted to technology, one focussed on its audience and the third on advertisers and publishers.

The executive heading each group will report directly to Yahoo chief executive Terry Semel.

"We`re moving aggressively to deliver the most possible value to our key customers -- audiences, advertisers and publishers -- and seize the major new opportunities we see ahead for the internet," Semel said in a release.

"We plan to drive growth and profitability by leveraging our deep audience insights to create a full-fledged advertising network."

Chief financial officer Susan Decker will become the boss of a newly created advertising and publisher group intended to "lead the transformation of how advertisers connect with their target customers" on the internet, Yahoo said.

A search is on for someone to replace Decker, who has been chief financial officer at Yahoo since 2000.

The Sunnyvale, California, firm is also seeking someone to head a new audience group with the mission of creating "unique, tailored and engaging experiences" for Yahoo users.

Chief technology officer Farzad Nazem will continue in his position but be in charge of a group with a mandate to speed innovation, particularly of advertising platforms that build on Yahoo`s project Panama Network.