Microsoft consolidates the company in a big reorginization

12 Jul


For a couple of weeks there has been quite a lot of talk about the upcoming re-organization at Redmond-based Microsoft. People wondering what it will mean for the software giant? Who will stay and who will go? Then before the big day arrived the head of the Xbox division left prompting another question. Who will take over the opening left by Don Mattrick’s departer?

“You don’t do a major reorganization like this unless you have some serious problems,” BGC analyst Colin Gillis said. “It consolidates power around the CEO.”

Today, Steve Ballmer gave us the answers when he sent out a memo at 6:00 a.m. (PT). The memo outlines the new structure, future strategy for the company and who is out altogether. There was one move missing from Mr. Ballmer’s memo that many critics would have liked to see didn’t happen since Mr. Ballmer will remain the CEO.

“We are rallying behind a single strategy as one company — not a collection of divisional strategies,” Ballmer said in a memo to employees published on Microsoft’s website on Thursday.

One of the biggest changes among department heads is moving Julie Larsen-Greaen away from the software side of Microsoft to the new devices division. Ms. Larsen-Green joined Microsoft back in 1993 were she worked where he became the program manager for C++. Since that time she has also worked on the office suite, Windows operating systems and Internet Explorer. In November of last last year she took over as the Head of the Windows division after Microsoft President Steven Sinofsky left the company. Now, with her new post she is replacing Don Mattrick, who left to become CEO at Zygna.

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