The company, which installed new chief executive Terry Semel just six months ago, is being scrutinised by analysts on Wall Street who are waiting to see growth in profits and sales.
However, the service has so far relied heavily on advertising revenues and it is facing increasing competition from MSN's free website and AOL's paid-for online service.
The restructuring will come as little surprise to investors after Yahoo! revealed third-quarter losses of £16.8m and a 44% drop in revenues when it reported its results in October. At the time, the company hinted that job losses and an overhaul of the business would be required to get the portal back on track.
The details of the restructuring will be discussed later today at a meeting with analysts.
The industry, however, is said to be sceptical about the portal's ability to charge for content and what content it could charge for.
It is widely believed that it would take a long time to build that business and that it will not have an immediate affect on profits.
On Tuesday, Yahoo! announced it is to start offering paid-for listings on its search pages in partnership with Overture Services, formerly GoTo.com. Yahoo! will be paid for every user that clicks through to an advertiser's website.
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