Microsoft reorganizes to focus on devices, services

The Seattle TimesJuly 12, 2013 

SEATTLE— In a sweeping reorganization designed to further Microsoft Corp.'s transformation into a devices-and-services company, CEO Steve Ballmer on Thursday realigned the company according to function, cutting in half the number of product divisions and centralizing other services, such as marketing, finance and business development.

In an email to employees, Ballmer said the reorganization will help the company "innovate with greater speed, efficiency and capability" and "will enable us to execute even better on our strategy to deliver a family of devices and services that best empower people for the activities they value most and the enterprise extensions and services that are most valuable to business."

The company will now be organized around the functions of engineering, including supply chain and data centers; marketing; business development and evangelism; advanced strategy and research; finance; human resources; legal; and COO areas, including field, support, commercial operations and IT.

Engineering will be divided into operating systems, applications and services, cloud and enterprise, and devices and studios.

Missing from the list of senior leaders in the new world order is Office President Kurt DelBene, who will be retiring, Ballmer said in the email.

A notable addition to the team is Mark Penn, a former Clinton adviser who joined Microsoft in 2012 to work on strategic and special projects, such as the "Scroogled" ad campaign against Google. As executive vice president of advertising and strategy, Penn will "take a broad view of marketing strategy," Ballmer said in his email. He will lead the newly centralized advertising and media functions along with Tami Reller.

The changes, which take effect immediately, are also designed to foster more collaboration — something Ballmer emphasized with the subject of his email: "One Microsoft."

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