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

Yahoo will begin testing out versions of its new main homepage to a minuscule number of users starting tomorrow, employing a design that more significantly allows users to customize the starting page in a way that essentially amounts to a kind of My Yahoo-lite for everyone.

The redesign is a huge and complex endeavor. According to comScore’s July stats, Yahoo (YHOO) has about 82 million daily U.S. visitors to its homepages.

Most of those visitors use the Yahoo main homepage, which is fully programmed by the company.

Making such a shift will also be a big perceptual deal for Yahoo, which needs to prove it has remained current and open, especially compared to faster-growing rivals like Facebook.

Yahoo has been trying to reinvigorate itself of late, after a disastrous takeover battle with Microsoft (MSFT) and a weakening of its business and its stock price.

Because of all this, the Yahoo brand has also doubtlessly been tarnished.

Thus, making a success of its new design is critical, and Yahoo’s CEO Jerry Yang has been touting the idea that Yahoo must be the “starting point” to the Web for users.

To respond to users who want to access information and services more quickly, the new streamlined homepage will be much shorter, be made up of more “snippets” and have links to outside email providers (initially, Google and AOL).

Most importantly, the new homepage will prominently feature a left-hand vertical bar, which has applications from both Yahoo properties and third-party services like eBay.

These apps can be added and subtracted easily. Eventually, there will be thousands of apps, from Yahoo and, after vetting, from outside developers.

(See screenshots below comparing the old Yahoo with three of the new ones.)

The changes will initially impact less than one percent of worldwide users in the United States, the United Kingdom, France and India. But they will be rolled out to a wider and wider circle over the next six months.

“People want broadcast and narrowcast at the same time,” said Tapan Bhat (pictured here), Yahoo’s SVP of Front Doors, Communities and Network Services, in an interview with BoomTown. “They want choices, but they also don’t want to do the work involved [in programming their own homepage].”

Thus, Yahoo apparently is going to give users both in its first major redesign since 2006, which it has been working on for two years.

The major components of the page will still remain close to the old one, but jazzed up and shifted around.

For example. the apps will be moved into the position where Yahoo services links used to be, and vice versa.

As before, there will be a main information module at the center of the homepage, “pulse” and news area on the bottom-right and -left, and search and navigation at the very top.

Bhat said the changes were made after a lot of research of user behavior and also after paying attention to key trends such as the widgetization of applications and the trend toward openness.

The new look is not aimed at the hardcore user, who might want to endlessly tweak the Yahoo homepage, although those options will remain for those who prefer them.

But, Bhat said, more people wanted quick access to things like email without having to launch apps. Instead, users will be able to see it all on the main page.

“It is not a dashboard approach of My Yahoo or iGoogle,” he said. “People are time-starved … so it is important to the user to get to their relevant daily information as quickly as possible without having to click around.”

Bhat said the rollout tomorrow will not be final and that Yahoo will keep making changes, depending on reaction.

“We don’t want 300 million people opposed to change,” said Bhat, who wrote a blog post on the changes here. “So, we are going to be listening hard.”

Here are screenshots (click on images to make them larger):

This is the home page that will be rolled out tomorrow

This is a home page that includes more outside apps

This is the home page that shows how email from Yahoo and Google and AOL would look

This is Yahoo’s current home page, as of tonight

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.