Google CEO Eric Schmidt says that Tim Armstrong’s replacement as president for American operations will be promoted from within. The company is currently reviewing its employees and will name Armstrong’s successor in a few weeks.

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As for Schmidt’s reaction to Armstrong’s defection to AOL, where he steps in for the exiting Randy Falco chairman and CEO of the Time Warner (NYSE: TWX) unit, the Google chief exec said: “Since arriving at Google eight and a half years ago, Tim Armstrong has been a critical force in Google’s advertiser-facing operations. We’re very sad to see him go, but would like to take this opportunity to wish Tim every success and good fortune in this new role at AOL—one of Google’s longest standing partners. He’s one of the most creative, fun, and respected leaders in the ad industry, and we have all loved working with him at Google (NSDQ: GOOG). We’ll announce an internal candidate as Tim’s successor in the coming weeks, and are delighted Tim will remain with Google for the next month to help oversee this transition.”