Previously, it was split between principal contracting, specialist contracting, India and Hong Kong.
The firm claimed the new set-up was more in line with Skanska's business structure, which concentrates on local markets.
The shake-up will see the creation of a UK management board with four operational directors – Andy Sturgess, Peter Coote, Alan Tweddle and Mike Putman – representing each of the group's core markets.
The quartet will form the new Skanska UK management board with chief executive Keith Clarke, deputy chief executive Robert Wallace, finance director John Keehan and legal director Mark Galloway.
Clarke will be responsible for the Asian division, which includes Hong Kong contractor Gammon and the group's Indian arm, while the world markets (such as mining) will be headed by David Fison.
Chief executive Clarke claimed the new structure was a significant move for the firm. He said: "This is a key moment in our development. Following over four years of steady improvement we are now positioning our UK companies for further growth through defined markets with shorter lines of communication and devolved responsibilities."
Sturgess, managing director of UK building, will handle all Skanska's PFI work in the UK.
Coote, managing director of building services arm Skanska Rashleigh Weatherfoil, will expand the UK's facilities management interests.
The group said civil engineering chief Tweddle would expand the group's front-end capabilities in civil engineering projects such as planning, procurement, project management and design to offer a "cradle-to-grave" infrastructure service.
Putman will oversee Skanska's cementation foundations operation as well as specialist arms such as Clark & Fenn Skanska and TCE Skanska.
A Skanska spokesperson said the new structure would give more collective responsibility to the four directors.