Yahoo will merge its display and web search advertising operations in a major overhaul of its advertising setup, it has announced.
The internet search engine reported poor first-quarter results with falling profits prompting demands for widespread change and co-founder Jerry Yang replacing Terry Semel as chief executive officer.
The firm also announced that weak display advertisement revenues were likely to hurt second-quarter results as well, leading to the current shakeup.
Executive vice president of global sales at Yahoo Gregory Coleman said: "When combined, the two organisations will deliver profoundly better results than when delivered separately."
According to the BBC, the new advertising structure will see Yahoo branching out into multi-platform selling such as video as well as banner and web search ads.
Yahoo has made widespread changes in its staff as it fights to gain ground on rival Google.
Besides the recent replacement of its chief executive and a new head of the combined advertising function, senior executive David Karnstedt, the firm has seen many senior members of staff jump ship over the past year.
US sales chief officer Wenda Millard is set to join Martha Stewart's Omnimedia. Chief operations officer Dan Rosenzweig left the company in March and in June chief technology officer Farzad Nazem decided to look for opportunities elsewhere.
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