New Details Emerge on Ballmer's Reorganization Plan

A reorganization has been in the works at Microsoft for over two years now, as the plan is near being finalized new details are emerging.  The changes would give greater responsibility to executives including Satya Nadella, head of the (Azure) server business, Don Mattrick, who runs Xbox, Qi Lu, chief of the online group (Bing), and Tony Bates, president of Skype.  Andy Lees who was essentially fired from the Windows Phone division, will leave Microsoft sometime between the release of Windows 8.1 and Windows Phone Blue.

Ballmer, who is now 57 is looking at potentially retiring after 10 years, and wants this reorganization to allow a natural successor to emerge within the company. Ballmer is still meeting with the board (i.e. Bill Gates) to discuss and finalize changes.

The changes are aimed at cutting the number of disparate units and fostering cooperation between products so that Microsoft is more competitive.

One idea under consideration by Ballmer would create four divisions: an enterprise business led by Nadella; a hardware unit overseen by Mattrick; an applications and services division under Lu; and an operating-systems group jointly led by Terry Myerson, Windows phone chief, and Julie Larson-Green, head of Windows engineering, said one person. Bates would also be given a significant role, said the person.

Microsoft currently  has eight divisions or units, and six presidents. The Windows business has been run by two vice presidents, Larson-Green and Tami Reller, since Steven Sinofsky was pushed out in November. The Office unit is run by Kurt DelBene.

Ballmer stressed at the time the need for Microsoft’s groups to better cooperate and for executives to make that happen.

Source: Bloomberg