Microsoft announces major restructuring

There will be four engineering areas as part of the shake-up, while Dynamics will be kept as a separate entity.

New Statesman
Microsoft CEO Steve Ballmer. Credit: Getty Images.

Microsoft has announced a major restructuring of the company, which would enable it to innovate with greater speed, efficiency and capability.

This is the technology giant’s first major restructuring in five years.

In an internal e-mail sent to employees, Microsoft CEO Steve Ballmer said that the company will work on a single core strategy to improve capability in all disciplines and engineering/technology areas by working together with more collaboration and agility around common goals.

Microsoft will organize the company by function: engineering, marketing, business development and evangelism, advanced strategy and research, finance, HR, legal, and COO. There will be four engineering areas namely OS, Apps, Cloud, and Devices, while Dynamics will be kept as separate entity as it requires special focus.

As part of the reorganisation, Terry Myerson will lead the operating systems engineering group, which will span all the company’s operating system work for console, to mobile device, to PC, to back-end systems. Further, the core cloud services for the operating system will be in this group.

Julie Larson-Green will lead devices and studios engineering group, which will have all hardware development and supply chain from the smallest to the largest devices the company makes. Larson-Green will also be responsible for the company’s studios experiences including all games, music, video and other entertainment.

Qi Lu will lead broad applications and services core technologies in productivity, communication, search and other information categories, while Satya Nadella will lead development of the company’s back-end technologies like datacenter, database and specific technologies for enterprise IT scenarios and development tools. Nadella will also oversee datacenter development, construction and operation.

Eric Rudder will lead research and trustworthy computing, teams focused on the intersection of technology and policy, while Kirill Tatarinov will continue to oversee Dynamics.

Tami Reller will lead all marketing with the field relationship as it is today, while Mark Penn will take a broad view of marketing strategy and will lead along with Reller the newly centralised advertising and media functions.

COO Kevin Turner will continue managing the company’s worldwide sales, field marketing, services, support, and stores as well as IT, licensing and commercial operations.

Tony Bates will focus on key partnerships, while Amy Hood will centralise all product group finance organisations.

Brad Smith, as a general counsel, will be responsible for the company’s legal and corporate affairs. Lisa Brummel will lead human resources.