Microsoft officially announces company-wide reorganization

By on July 11, 2013, 10:56 AM
microsoft, business, management, reorganization

As expected, Microsoft has announced a far reaching company reorganisation to better align itself with its newly acquired focus on devices and services. In a memo to employees titled, “One Microsoft,” CEO Steve Ballmer said the changes will allow them to “innovate with greater speed, efficiency and capability” and that to execute they have to move from multiple Microsofts to one Microsoft.

Indeed, the Redmond-based company has been criticised for having a product lineup that’s too heterogeneous and disconnected. The growing rivalry and poor cohesiveness between its own business units has also led to needless duplication of efforts and delays entering crucial new markets like smartphones and tablets.

Going forward Microsoft will pare the number of business units from eight to just four, and functions such as finance and marketing will be centralized rather than being handled independently by each unit.

Current Windows chief Julie Larson-Green will shift to oversee engineering efforts for the Surface tablet, Xbox console, games and peripherals under the new Devices and Studios group. Terry Myerson, current head of Windows Phone engineering, will now lead the new Operating Systems Group, expanding his responsibilities from the mobile side of things to cover Windows and the Xbox’s OS as well.

Qi Lu, who currently leads Bing and Microsoft’s other Internet initiatives, will take over the new Applications and Services group in charge of Bing, MSN, Office 365, Office servers and clients, Dynamics CRM and ERP, Skype, Yammer and Lync. Lastly, Satya Nadella, remains head of engineering for everything related to the Server & Tools he currently leads, in addition to Microsoft’s Global Foundation Services.

As part of the changes, Kurt DelBene, who ran the Office division, will be retiring from Microsoft while Craig Mundie will be stepping off the Senior Leadership team to work on an unspecified "special project"  through the end of calendar 2013, and will remain a consultant through the end of calendar 2014.

Many other roles are changing under the newly centralized supporting roles too. Check out the full 2,700-word memo for details of who’s in, who’s out and what else is changing as part of the reorganization.




User Comments: 8

Got something to say? Post a comment
Guest said:

I recently went to a supermall where there was a spot where one could buy win8 and for some reason it was on sale. The sugested retail price was 260 and it was discounted to 49? Was that a mistake or you see the same in stores where around you?

Skidmarksdeluxe Skidmarksdeluxe said:

I'll pass on reading that 2700 word document. I'm not terribly interested in what Microsoft's up to nowadays. I'd rather read the the condensed version here on TS.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Let me guess Mr. Windows Aero and Dr. Start Menu have been dismissed. Everyone has been organized into squares and each square has been color coordinated, depending on the department. A finger swipe across anyones desktop, will elevate them to a different group category.

1 person liked this | TheBigFatClown said:

Does this re-organization include the firing of and subsequent imprisonment of CEO Ballmer for terrorizing Americans with the catastrophe called 'Windows 8'?

kuroiei kuroiei said:

"...current head of Windows Phone engineering, will now lead the new Operating Systems Group, expanding his responsibilities from the mobile side of things to cover Windows and the Xbox?s OS as well."

Does that mean we will finally have One OS for mobiles, tablets, desktops AND Xbox? "Windows One." Oh, the atrocities yet to come...

tipstir tipstir, TS Ambassador, said:

Thinks don't work out so well without Bill at the helm as the VP is running things downward. Why did they take Media Center Edition out of Windows 8 Pro. Whose smart idea was that at Microsoft HQ. Should have left it in there. Today with Local Broadcast now showing over 71 channels in HD including channels that were only available on CATV. Things are changing and MCE would be great. I use Windows 7 MCE every day.

OortCloud said:

Yes MCE was awesome - can't believe how they could spend so much time and effort getting something so close then letting in languish and die without ever really properly selling it to the masses. They seem far too busy reacting to everyone else's ideas these days and chasing after long-ago sailed ships. Zune / Window Phone / App Store / Bing / Surface etc. As for trying to shovel a touch interface onto a desktop platform with practically zero consideration or compromise for the half-billion keyboard and mouse machines it will install on - what are they thinking? The mouse interface on Metro is a shocking bit of UX. Have a bit more conviction in your own way of doing things MS and push them forward in nice ways and you'd do so much better.

captaincranky captaincranky, TechSpot Addict, said:

Steve Ballmer is an inherently witty, funny, and entertaining guy. It's just that up until now, he hasn't been paired with the right MC & announcer. Forthwith, I believe I have the perfect solution. A companion that would fit him like a glove...........Les presantamos.....

Heeeeeere's Stevie..........................!

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.