Gillespie’s old unit, the CBS Interactive News Group, has been folded into a group with the company’s “business brands,” including BNET and MoneyWatch. Greg Mason, who was running the business group, now oversees the whole thing.

This one is literally old news, since it was announced internally all the way back on Jan. 26. But as you may recall, tech and business outlets were under a government mandate that week not to write about anything that wasn’t related to what we then called the Apple (AAPL) tablet. (Remember those days?)

The move would be bigger news if it augured a bigger shake-up at CBS’s digital side, especially since CBS Interactive head Quincy Smith has finally left the company to open up his own M&A shop. But CBS spokeswoman Sarah Cain says that’s not the case.

In a few hours, we’ll get a better sense of how CNET has performed for CBS (CBS) since the company acquired it in a $1.8 billion deal in 2008. CBS is set to announce Q4 earnings shortly, and estimates range widely depending on which analyst you listen to. Anthony DiClemente of Barclays Capital, for instance, thinks Interactive revenue will increase 10 percent, while the unit’s earnings will decrease by 8.8 percent; the consensus calls for an increase of 31 percent and a 36.2 percent drop respectively.

Meanwhile, for completists: Here’s Interactive boss Neil Ashe’s announcement explaining Gillespie’s move and the subsequent changes.

From: Neil Ashe
To: CBSi-ALL
Sent: Tuesday, January 26, 2010 1:15 PM
Subject: Tech, News & Business Announcement

Team:

We begin 2010 in an exciting position. Our brands are growing, and we continue to attract huge audiences and many of the world’s largest advertisers. As we look to the future, our focus remains on creating great content and experiences for our users, and great marketing solutions for our customers.

To that end, we are making changes today that streamline our division by bringing two business units into one. Tech & News and Business will now operate as a single business unit led by Greg Mason. Dave Morris will directly manage the sales organization for this new business unit while remaining in his role as Chief Client Officer for CBS Interactive. Joe Gillespie will work closely with me, Greg and Dave on making this transition a success. He’ll be with us until the end of March, at which time he has decided to leave the company to pursue new opportunities and his other interests, including a new appointment to the board of Jinni.com.

The creation of this new business unit will let us capitalize on the combined power of some of our biggest and most influential brands including CNET, CBSNews.com, CBS MoneyWatch, BNET, ZDNet and TechRepublic. It will also allow us to create better alignment between properties like CBS MoneyWatch and CBSNews.com where there are natural synergies between the content and audiences. This is good for CBS Interactive, as well as CBS as a whole.

For our marketing partners, this change helps simplify how clients work with us.  Individually, each business unit has seen great success cross-pollinating content and selling programs. Combined, we have the ability to do even more of these types of programs, but even faster and on a much larger scale. Dave will work closely with the sales team to create programs that take advantage of the combined power of these leading brands.  And of course, Dave will continue to be our primary representative in the marketplace for CBS Interactive as a whole.

Those of you that have worked with Greg know that he has an incredible track record of building and operating world-class brands, and repeatedly transforming businesses into success stories. He joined CNET Networks in 2000 and was instrumental in rebuilding our business after the bubble burst. He helped lead the charge to launch the Messaging Plus ad units in 2001, which put CNET Networks on the map in terms of industry leadership and innovation. From 2004-2007 Greg led CNET Content Solutions, which he transformed into one of our fastest growing and most consistently profitable businesses. Since 2007, Greg has been at the helm of our business portfolio, during which time he has launched two important new brands–BNET and CBS MoneyWatch, as well as led the continued success of our storied IT brands–ZDNet and TechRepublic.

Greg’s unique ability to manage large businesses, as well as infuse them with his entrepreneurial spirit will serve this new team well as we build upon our success and look to the future.

During his 6 years at CNET Networks and CBS Interactive, Joe has been a driving force in the continued success of CNET.  Under his leadership, CNET is recognized today as the #1 tech media brand in the world, and CBSNews.com became a site worthy of the legacy of CBS News. In 2008, Joe architected the complete relaunch of CNET, which has resulted in record traffic growth ever since. The site recently eclipsed 100 million users for 3 consecutive months (an all-time record). Early on, Joe initiated the use of video across the site, taking CNET beyond just product reviews and making it the definitive resource for people who love technology and want to get the most out of it. This vision also included broadening the coverage model with new content additions like Car Tech and Crave.

At CBSNews.com, Joe led a major site redesign, which has reinvigorated the site, driving growth and attracting new advertisers with a renewed focus on photos and original content. Since its debut in mid-June, unique users are up 22%, page views are up 12% and video streams are up 28%. Joe and his team were also instrumental in helping Katie Couric launch her online presence, executing her Campaign and Inauguration webcasts, and most recently the @KatieCouric webcast.

In addition to being a good friend, Joe has been an invaluable member of my management team and I want to thank him for all his contributions over the years. Please join me in wishing him all the best in his new endeavors.

I’m excited about the possibilities this new business unit creates for us. We’ve got great leaders in Greg and Dave, and world class brands with exciting opportunities in front of them. I know that this new, combined team will achieve great success and I look forward to a prosperous 2010 with the entire CBS Interactive team.

Best, NA

CBS paid $1.8 billion for CNET last summer, and today it is dealing with the consequences: A re-org and layoffs.

CBS execs won’t release specifics on the firings and won’t say how many people were let go altogether. So news will be coming out in piecemeal fashion for some time.

The best that I can tell, though, the cuts came throughout the company’s interactive group, from its London-based last.fm radio service through CBS (CBS) headquarters in New York to CNET’s homebase in San Francisco.

Based on the fact that CBS Interactive boss Quincy Smith flew to the west coast to quarterback the re-org this morning–and the fact that CNET was much, much bigger than the CBS Interactive group–I’m assuming that more CNET employees were let go than anyone else.

Quincy, if I’m wrong, please let me know. And CBS Interactive/CNET employees can reach me directly at peter@allthingsd.com.

In the meantime, here’s the new structure of Smith’s group, via an internal memo that comes from him and Neil Ashe, his CNET counterpart:

Team,

As we come to the end of 2008, we have a lot to be proud of. CBS Interactive is the best online content network for information and entertainment. Our properties are expanding, advertisers are capitalizing on our properties and their scale, and we are positioned well to continue to grow. As we prepare for 2009 and beyond, we’d like to update you on this progress, announce some organizational changes and comment on the broader market environment and how it impacts CBS Interactive.

Progress

CBS Interactive is the 8th largest Internet network in the world. Our combined traffic is up nearly 30% since we closed the merger this summer. CNET, CBSSports.com, BNET, GameSpot, TV.com, CBS.com, last.fm, and CHOW have each had record traffic within the past three months. Our commitment to our users is paying off.

Advertisers have noticed. We have recently signed and announced deals across several of our properties with Microsoft, AT&T, Intel, Bertolli, EA, and GM. In these challenging economic times, marketers are consolidating their efforts with their best partners. Our properties, our audiences, our ideas and our insights will continue to differentiate us in the marketplace.

Finally, we have contributed to and benefited from the TV and Radio divisions of CBS. We’ve done nearly 1,500 purpose-driven promotions to our properties on Broadcast TV, Radio and local TV Stations; CHOW and GameSpot content is running on the CBS Outernet; and CNET ran a major consumer campaign in markets like New York and San Francisco through CBS Outdoor. CBS Interactive is also a key partner to CBS Television Network for major broadcast events. In just the last week, we featured complementary content for events including The Victoria’s Secret Fashion Show, the Grammy Nominations and the SEC Championship.

Moving forward, we have a lot to look forward to. Events like CES, The Grammys, and March Madness on Demand are all just around the corner. Each represent huge cross-platform opportunities where CBS Interactive will again help complete the experience with coverage on air, online, and on mobile for our audiences.

Organizational Promotions and Changes

As we enter 2009, we are making some changes to our organizational structure to capitalize on audience and advertiser overlaps. We are also making some changes to key functions so that we can realize the benefits of our position in the marketplace. These changes mark another significant milestone in our integration, as we fine-tune our organization to best take advantage of the power of our entire network.

Sports, Games and Music

We are combining our Sports, Games and Music properties into a single group led by Steve Snyder. Steve has tremendous product and leadership experience and an enthusiasm for each of these categories. In addition, Tom Jones will be moving over from CNET to head-up the sales efforts for this group. Within the group, our talented senior leaders including Jason Kint, Rich Calacci, Jaci Hays, Kevin Menard, Felix Miller, Doug Schmidt and others will report to Steve and to Tom.

Entertainment & Lifestyle

We are also moving our Lifestyle properties, CHOW and UrbanBaby, to the Entertainment group (TV.com, CBS.com, The CBS Audience Network and TheInsider.com) to capitalize on the similarities in audience and advertisers. This group will continue to be led by Anthony Soohoo with sales led by Ken Lagana. We’re excited to see the innovation that will come from this group in 2009.

Technology & News

Under the continued leadership of Joe Gillespie, our Technology & News division will bring CBSNews.com and CNET News.com into a single CBS Interactive News Group. Each site will maintain its own brand identity, while benefiting from shared resources in design, product and engineering to deliver deeper and more comprehensive coverage of major stories and events. Led by Mark Larkin, with Dan Farber as Editor-in-Chief, CBS News.com and CNET News.com will also have the opportunity to share content and collaborate on stories for the benefit of their unique audiences.

CBS Interactive Marketing

We are bringing together our key marketing functions into a new group called CBS Interactive Marketing led by Mickey Wilson. The group brings together expertise from across the organization so that we can capitalize on our biggest opportunities, and elevate the company to be a strategic marketing partner whose products, consumer insights, and ad innovations are critical to our clients’ long-term success. They will establish the company as the standard for premium content online, and define and evolve brand strategies to capture the biggest opportunities for audience and revenue growth through market planning, insights and execution.

CBS Interactive Business Development

We are also bringing together all of our business development activities. This group will be led by Mike Marquez. Mike and his team will be responsible for the development of all new partnerships, investments, and acquisitions. They will be charged with taking advantage of knowledge sharing across the whole company to ensure that we are the strategic partner of choice for the industry.

Market Conditions

As you know the general economic environment continues to be a challenge. We have always been very aggressive about managing our costs, and that requirement is even more critical now than it has ever been. We believe this new, more efficient organizational structure will produce better results for CBS Interactive, and also result in lower operating costs. It is always very difficult to make these kinds of reductions, but they come after a thorough review of how we are organized and how we operate, and what best serves our many users, advertisers and employees.

CBS Interactive is a special place because of you, and we thank each of you for what you have done, are doing, and will do to exceed the expectations of the tens of millions of people who come to our properties every day.

Today, we sit in a great position. People seek out our brands because we provide them with the information and entertainment they want and need, and marketers seek us out because of the powerful audiences we attract. We are positioned to grow in 2009 and beyond.

Best,
-q, NA

CBS Interactive continues its integration process, which now calls for the further combination of several portions of the division into unified groups oriented around similar content. This important move allows us to better align our premium content for our audiences and our advertisers, and also results in reduction in certain areas that are now duplicated in the new organization structure. We believe these moves are necessary to continue building CBS Interactive into the most creative, most efficient, most profitable and fastest growing Internet company in the media business.”

News of the re-org was first reported by paidContent this morning. No details yet on how the restructuring will play out, though a person familiar with the situation did confirm that the company will push CNET’s News.com news site and CBS’s own CBSNews.com units closer together. Both groups have already been reporting to former CNET exec Joe Gillespie since the merger went through this summer. More details as I get them.

UPDATE: Here’s the complete re-org memo.

A note to CBS employees: Since this is one story you folks are going to have a hard time covering, feel free to pass along your tips to me. You can reach me directly at peter@allthingsd.com. If you want to be completely anonymous, which is understandable but less useful to me (I won’t have any way of reaching you for follow-up) you can use the blind tip box here.