Yahoo is announcing far-reaching cutbacks, in staff and management, to streamline the company. No news yet how far up the chain the reorg will go, but Techcrunch is reporting a rumor that Terry Semel, the CEO, is resigning. Valleywag ran an item earlier today that Yahoo was engaged in a CEO search. One thing to watch: the responsibilities given to Sue Decker, the company's CFO, who is the leading internal candidate to succeed Semel. The cuts are likely to result in the consolidation of competing product lines such as Flickr and Yahoo Photos, and curtailment of the company's Hollywood dealmaking. Yahoo's purge comes after an internal memo, the peanut butter memorandum, called for the company to focus. Update: Yes, Sue Decker gets more power, taking responsibility for monetization, which I guess is what people call sales, if it's put, bizarrely, into the finance group. Dan Rosensweig, the COO, will leave the company in March. He'd already been preparing an exit into politics.