Microsoft set to unveil big management reorganisation

PUBLISHED : Thursday, 11 July, 2013, 12:00am
UPDATED : Thursday, 11 July, 2013, 3:28am

Microsoft will unveil its biggest management reorganisation in at least five years today in an attempt to improve its ability to compete in a world of mobile devices and web-based services, according to the technology blog AllThingsD.

The changes will shift the duties and responsibilities of many top Microsoft executives and are intended to eliminate overlap within the company, AllThingsD reported on Monday, quoting anonymous sources.

A new cloud computing and business-focused products unit will be headed by Satya Nadella, who currently oversees Microsoft's server business, Bloomberg reported last week. Julie Larson-Green, co-head of Microsoft's Windows operating system business, will lead the company's hardware efforts, including the Xbox video game console and Surface tablets, it said.

Microsoft's chief executive, Steve Ballmer, remains under pressure to ramp up the company's presence on mobile devices as the computer industry steadily declines.

The company's last significant reorganisation came in 2008, when Ballmer split the platforms and services division into three units: Windows; online services; and servers and tools.

Under the new structure, Qi Lu, the head of Microsoft's money-losing online group, will also oversee Microsoft Office, Bloomberg said. It said Tony Bates would oversee Microsoft's business development efforts, including mergers and acquisitions and corporate strategy.

David Smith, an analyst with the industry research firm Gartner, said: "What they have has led to some pretty profitable businesses, but when people are aligned with certain goals, they may not be thinking the right way for the future."