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Microsoft restructures around engineering

One Microsoft restructure will focus on single strategy, not separate product groups

Microsoft restructures around engineering
Ballmer: Restructure is a 'far-reaching realignment of the company'.

Microsoft has announced a major restructuring of the company, to focus on engineering and to take a holistic of the company's diverse product lines rather than separate teams working on each product line.

CEO Steve Ballmer announced in a company memo that Microsoft will be restructured into several new divisions - Engineering, Marketing, Business Development and Evangelism, Advanced Strategy and Research, Finance, HR, Legal, and COO - with four engineering divisions - Operating Systems Engineering; Devices and Studios; Applications and Services; and Cloud and Enterprise Engineering.

In the company statement, Ballmer said the ‘One Microsoft' strategy was a "far-reaching realignment of the company that will enable us to innovate with greater speed, efficiency and capability in a fast changing world."

The move will have the effect of "focusing the whole company on a single strategy, improving our capability in all disciplines and engineering/technology areas, and working together with more collaboration and agility around our common goals," the memo added.

Ballmer said: "We are rallying behind a single strategy as one company - not a collection of divisional strategies. Although we will deliver multiple devices and services to execute and monetize the strategy, the single core strategy will drive us to set shared goals for everything we do. We will see our product line holistically, not as a set of islands. We will allocate resources and build devices and services that provide compelling, integrated experiences across the many screens in our lives, with maximum return to shareholders. All parts of the company will share and contribute to the success of core offerings."

The move will mean the break-up of the Windows group, which will be merged with elements of the entertainment and devices team.

The restructure will see a number of personnel changes. Kurt DelBene president of Microsoft Office division is retiring, and Rick Rashisd will move from running Microsoft Research into a new role driving core OS innovation.

Craig Mundie, the former chief research and strategy officer, who had already announced his leaving Microsoft at the end of 2014, will now step down, from the senior leadership team, and take on a special project for Ballmer.

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