Coming Soon, Yet Another Re-Org at Yahoo

Updated: Given the number of re-orgs that have taken place at the Sunnyvale, Calif.-based Internet company Yahoo (s YHOO) in recent months, one could be forgiven for dubbing it “Re-org Nation.” But while many of these shakeups — all part of a larger game of musical chairs, really — were on Jerry Yang’s watch, even though he’s since left, we haven’t seen the last of them yet.

My sources are telling me that the company is close to announcing yet another re-org, one that will divide Yahoo into two distinct groups. The first is a product & engineering division that will be spearheaded by Ari Balogh, currently chief technology officer of the company. Hillary Schneider, executive VP at Yahoo, is rumored to be the one slated to run the second one, which is generically being referred to as the business division. The rationale behind this forthcoming shakeup is that it will give Yahoo a more united front.

Update: The rumors of this re-org were first reported by Kara Swisher of AllThingsD blog. A recent check of Yahoo management bios shows that Ari has now “product” responsibilities and Hillary is responsible for North America, though the company hasn’t made any formal announcements. I guess it would be part of something that is coming down the pike.

As part of the changes to come, there will be several changes at Yahoo, many impacting the middle tier of Yahoo’s management. For instance, Steve Schultz, currently general manage of Yahoo Real Estate and Yahoo Health will be taking care of the all important Yahoo Finance business. According to some reports published on April 15, Yahoo is going to cut a few hundred employees.

Yahoo’s biggest challenge has been an inability to act as a single entity; historically, most product groups led by general managers have become “silos” with a “to each its own” mentality. What do you guys think — will this re-org help Yahoo or create another layer for an already overly complex company?