Raghavan reportedly left Yahoo because there are massive layoffs for the division was holding. Not yet clear what the new role at Google Raghavan. But, as head of Yahoo Labs, Raghavan research arena is vast and includes everything from data mining algorithms to search through.
Raghavan is also a consulting professor of computer science at Stanford University. According to his bio, Raghavan has written two books on randomized algorithms and information retrieval.
More importantly, Raghavan highly respected within the company and have a strong commitment to research.
Raghavan was appointed Chief Strategic under the leadership of former Yahoo CEO, Carol Bartz, who was fired.
Raghavan himself has spent seven years at Yahoo. Raghavan's departure is certainly a big blow to Yahoo.

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