Yahoo is losing yet another top executive–Toby Coppel, its EVP and managing director of Europe and Canada, is set to announce today that he is stepping down.

The departure, which has been in the works for months, is not related to the recent news that Yahoo CEO Jerry Yang is also relinquishing his job as soon as the company completes its search for another CEO.

Coppel’s job covers the major Western European markets (United Kingdom, France, Germany, Italy, Spain, Scandinavia), as well as Canada, for Yahoo (YHOO).

His successor will be Rich Riley, who is currently SVP of Europe’s Advertiser & Publisher Group, which put him in charge of all revenues for the division. Riley, who came to Yahoo a decade ago, was previously the head of Yahoo’s Small & Medium Business Group in the U.S.

Coppel, who came to Yahoo with former Yahoo CEO Terry Semel in 2001, has run European operations for Yahoo for 18 months. And most of his time has been spent restructuring and making massive cuts.

The unit will have about one-third of the people as when Coppel arrived by the first quarter, after the current round of layoffs. And, if you include Yahoo’s sale of the comparison-shopping site Kelkoo last week, the cuts total 45 percent of its former size.

Coppel also shepherded the move of Yahoo’s European HQ to Switzerland from higher-priced London. Most of its top managers are now located there, although London remains an important Yahoo outpost, since it is the largest online ad market in Europe.

Coppel will remain with Yahoo until the end of the first quarter to ensure a smooth transition. He told BoomTown in an interview that his future plans are undetermined, except to welcome his third child into the world very soon.

“I have been transitioning our European business, restructuring it and making it stronger, as Yahoo is moving to product development on a global platform,” said Coppel. “While there is more work, there is now a strong team in place, focused on going forward and it needs to spread its wings.”

Coppel noted, although a lot of his tenure was occupied by restructuring the European unit, that “we have taken display advertising market share from MSN, AOL and other competitors in almost every one of our European markets in 2008 and we grew our Canadian business over 50 percent this year.”

And, indeed, Yahoo’s online display advertising business is stronger in Europe, although subject to the same vicious economic downturn that has hit the U.S. market.

In addition, Yahoo–and everyone else–lags well behind Google (GOOG) in the more lucrative search business in Europe, even more so than in the U.S., forcing competitors like Yahoo to streamline to compete.

That has meant layoffs, but also re-architecting Yahoo’s product development toward a global model to cut costs and also getting rid of some noncore assets like Kelkoo.

It was revealed last week that Kelkoo was sold to a U.K.-based private equity firm called Jamplant, at a reported discount from what Yahoo paid for it–$576 million–in 2004.

Now that all these kinds of major changes were made, Coppel said, it seemed a good time for him to go too.

“My value add-was not what it was going forward,” said Coppel, who noted that several layers of management in Europe had been collapsed in his tenure. “If we are streamlining and we mean it, it has to also start at the top.”

Here’s the internal Yahoo memo from President Sue Decker about the stepping down of Yahoo European head Toby Coppel, which BoomTown wrote about here.

The departure, which has been in the works for months, is not related to the recent news that Yahoo CEO Jerry Yang is also relinquishing his job as soon as the company completes its search for another CEO.

Coppel’s job covers the major Western European markets (United Kingdom, France, Germany, Italy, Spain, Scandinavia), as well as Canada, for Yahoo (YHOO).

His successor will be Rich Riley, who is currently SVP of Europe’s Advertiser & Publisher Group.

Here’s the memo:

From: Sue Decker
To: XXXX
Sent: Thu Nov 27 09:02:28 2008
Subject: Yahoo! Europe & Canada update

Sue

The only issue that arose was over the appointment of Ash Patel to head the new Global Products group. His appointment was greeted with internal dissent, but Yahoo CEO Jerry Yang was said to have insisted that Patel remain on as planned.

Last week, I outlined the sweeping internal changes at Yahoo (YHOO), which will again dramatically change the structure of management.

As we wrote, the new Global Products group will be headed by Patel (pictured here), who is currently EVP of Yahoo’s Platforms and Infrastructure division.

Much of the Network division, which until recently was under the leadership of the now departed Jeff Weiner, will move under Patel, including search, mail, instant messenger, front page, platforms and social networking.

All these products are considered “global” properties and products, including divisions run by communications and communities SVP Brad Garlinghouse, former Search SVP Vish Makhijani and Front Door head Tapan Bhat.

While Makhijnai is leaving, Bhat is staying so far and Garlinghouse–despite previous reports of his imminent departure–will likely stay on through the summer.

Sources said the prospect of working for Patel is not a welcome one for some Yahoo execs in the old Network division.

Patel has been at Yahoo since 1996, and some do not think his operational style is dynamic enough and claim his division has had problems shipping products.

In the new organization, Global Partner Solutions EVP Hilary Schneider (pictured here) will get purview over the entire U.S. region.

Schneider will continue to oversee all ad sales and add on the Yahoo Media Group under Scott Moore, who was Weiner’s other direct report.

That shift will bring together Yahoo’s vast content properties, like Yahoo Finance, with ad sales and align them more closely.

The rest of the world will be split up between three other regions: Europe, headed by Toby Coppel; Asia, run by Rose Tsou; and emerging markets, headed by Keith Nilsson.

Patel, Schneider and the others all report to Yahoo President Sue Decker.

The reorg was largely run by Decker (pictured here) and top HR execs. Yang was involved but not very visible in the process to top managers.

And all of this reorg might be moot anyway.

Billionaire activist investor Carl Icahn is still pursuing his proxy fight to remove Yahoo’s board and management, which could come to a head at Yahoo’s annual meeting on Aug. 1.

And investors are pressing Microsoft (MSFT) to make another proposal to run Yahoo’s search ad and search businesses, which could include the software giant buying a significant stake in Yahoo.

While some think Yang will soon hand over the CEO reins to Decker, increasing numbers of insiders and outside investors are pushing for new management at the top, as Yahoo’s shares decline and more and more talent takes flight from the company.

“A fish stinks from the head,” joked one employee. “This reorg is change, but what we might need goes higher than this.”

But I am going to surprise him by telling him that I think he is so very clever today.

Why? He signed the obvious deal with social network Bebo to sell its display ads in the United Kingdom and Ireland, renew its search deal and add its excellent Answers product and market a branded toolbar.

Could this be a first kiss in a possible bigger deal, such as a Yahoo acquisition of Bebo, which has been rumored? The fact of the matter is that this pair, despite reports, have never held such talks.

That said, such a purchase would be a good one for Yahoo. Provided, of course, that its CEO Jerry Yang got it into his mind to do something bold and initiate a possible game-changer. (Sorry, Toby, I know you think I am being mean again, but the truth hurts!)

While Yahoo cannot hope to buy either MySpace or Facebook (too pricey), what it could do with a smaller, less expensive and internationally oriented site like Bebo, especially when integrated with some of Yahoo’s better properties, could be interesting and even invigorating for the company.

Bebo, which runs behind powerhouses MySpace and Facebook in the U.S., is a little engine that could in Britain and Ireland, where it dominates the market with 11.6 million members.

The ad deal is exclusive and, while the parties did not say so in their joint statement, is likely to be along the lines of those handing-out-the-candy-to-social-networks guaranteed ad arrangements both Facebook and MySpace have signed (with Microsoft and Google, respectively). This is Yahoo’s first plunge into this game.

Under terms of the deal, Yahoo will sell Bebo’s display ads in the U.K. and Ireland, leaving Bebo to concentrate more on ad sales for its innovative original entertainment offerings, like its “KateModern” and the more recently announced “Sofia’s Diary.”

Yahoo’s own most innovative property, Answers, a community-based knowledge service, will be integrated into Bebo. And the pair will develop and distribute the Bebo toolbar, which will let its users get info about their Bebo accounts when not on the site. Yahoo also renewed its deal to provide search on Bebo.

Neither Coppel, who is managing director of Yahoo Europe, nor Joanna Shield, Bebo’s president of international, were available for an interview, so I politely refuse to quote from their meaningless press release statements.

Still, here’s a post I did about Coppel (pictured here, as he refused to be the subject of my withering video camera lens) after a visit on a recent trip to London, as well as a post I did of Shields and her sharp team at Bebo there too (as well as a video posted below).

Please see this disclosure related to me and Google.

Coppel, pictured here and whom I have known for many years, comes from ground zero–literally these days–at Yahoo’s HQ in Sunnyvale, Calif. There, he most recently was the company’s chief strategy officer, reporting directly to recently departed CEO Terry Semel, in a job that included much of the portal giant’s deal-making worldwide.

In Europe, the United Kingdom-born-and-educated Coppel replaced Dominique Vidal, in what will be Coppel’s first foray into serious hands-on operations.

He will have his work cut out for him.

To start, here is a short video of my visit to Yahoo Europe’s HQ, as well as a tiny tour of London on my way there:

In many key aspects, Yahoo lags behind–guess who?–Google and even Microsoft across Europe, according to numerous recent studies.

In a recent report by SearchIgnite and RBC Capital Markets, for example, Google won the search monetization battle, with 76% market share (though it serves only 60% of ad impressions), while Yahoo got just over 18% (a 34% overall search share).

And Comscore recently released its first pan-European review of online activity, showing Google as the most popular property in 13 of 16 countries, with Microsoft often coming in second. Yahoo was third in line overall, despite making the top three list in only Ireland, Italy and Spain.

Still, Coppel could easily move the numbers for Yahoo, by cleaning up operations (like giving more attention to its Kelkoo shopping-comparison site, acquired in 2004 for $579 million); kissing up to a European ad market worried about Google dominance; and making a spate of sharp acquisitions (like, say, Euro-popular social-networking site Bebo, with which Yahoo has never held talks despite rumors).

Some good news: Yahoo’s new Panama ad-monetization system and other improvements have recently been rolled out in Europe, and Coppel is logging in a lot of frequent-flyer miles since he got here in early July assessing the situation overall. Plus, he knows how to make a deal.

While the humble Coppel did not want to go on the record on my video yet or talk in detail about his plans–preferring to wait, he said, until he gets a lay of the land–he was upbeat about Yahoo’s prospects in mobile, reaching out to more advertisers with better offerings and in injecting some aggression into the troops here.

“The battle is far from over,” he said, noting that there are a range of ways Yahoo could regain its once-dominant status in an ever-changing media and tech landscape here. He’s right about that–although Yahoo has to act aggressively and quickly.

Coppel promised to answer a range of questions about Yahoo Europe in the coming weeks, so send some to me at kara@allthingsd.com or leave them in comments.

Please see this disclosure related to me and Google.

For some reason, though, we have still not gotten our invite to Buckingham Palace to discuss the wireless access and show off the iPhone to the royals.

Nonetheless, we press ahead and will be out and about through Monday to see a little of what’s cooking in the digital space here.

London and all of England are quite the users of online technologies–for example, London itself just became the top geographic network on Facebook, with 810,000 sign-ups.

While here, I will be meeting with Reuters head Tom Glocer; Yahoo’s new Europe honcho, Toby Coppel; the people behind the Bebo social network (the service is very popular in the United Kingdom); Index Ventures’ Danny Rimer; and a few cool start-ups. A planned meeting with the Joost folks got canceled sadly, but somehow I will recover.

Look for my tech travel posts and videos in the days ahead and, until then, try to identify this quote and from where from a famous Englishman, and which seems particularly apt for the entrepreneurs of tech:

“Our doubts are traitors, and make us lose the good we oft might win, by fearing to attempt.”