Yahoo! has announced it is to simplify its business as it attempts to catch up on market leader Google.

In a statement released earlier today, the search engine firm is to reorganise its management structure as it aims to better focus on its key customer segments - audiences, advertisers and publishers.

Chairman Terry Semel said: "The internet is continuing to grow and evolve at a rapid pace and we're reshaping Yahoo! to be a leader in this transformation, just as we did successfully five years ago."

He added the company is looking to become more customer focused, as it aims to "lead in next-generation advertising platforms".

Under the shake-up chief financial officer Susan Decker is set to lead a new advertising unit.

However, operating officer Daniel Rosensweig will leave the company on January 1st, alongside media group chief Lloyd Braun.

Earlier this week, Yahoo! announced details of a partnership with Reuters that will allow readers to upload their own pictures and video footage alongside professional news reports.