Ballmer Revamps Microsoft to Focus on Devices and Services

In a letter today, Microsoft (NASDAQ: MSFT  ) CEO Steve Ballmer announced a restructuring that now organizes the company by its main functions. 

One of the major changes announced is the setup of four main engineering divisions that focus on the company's core offerings. The new "disciplines" are listed as:

  • Operating Systems Engineering Group, headed up by Terry Myerson
  • Devices and Studios Engineering Group, headed up by Julie Larson-Green
  • Applications and Services Engineering Group, headed up by Qi L
  • Cloud and Enterprise Engineering Group, headed up by Satya Nadella

"Today's announcement will enable us to execute even better on our strategy to deliver a family of devices and services that best empower people for the activities they value most and the enterprise extensions and services that are most valuable to business," Ballmer said in the letter.

As a result of the restructuring, Kurt DelBene, who worked with Office and was a "key part" of Ballmer's leadership team, is retiring. Craig Mundie, a senior advisor to the CEO, will step down to work on a special project for Ballmer through the rest of the year, and become a consultant in 2014. Rick Rashid will move away from Microsoft Research to work in the OS division. 

Ballmer said the restructuring involves lots of change: "But in all of this, many key things remain the same. Our incredible people, our spirit, our commitment, our belief in the transformative power of technology — our Microsoft technology — to make the world a better place for billions of people and millions of businesses around the world."


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