Microsoft is preparing to reorganize

According to sources close to the situation, Microsoft Director Steve Ballmer is planning to disclose his plans to restructure the technology giant to the company's executive team on July 1.

This perspective made many of the company's top managers worry, because Ballmer developed this important plan without consulting the software giant's management team. According to many sources, on the contrary, he worked with only a small group of direct subordinates, as well as several members of the Microsoft board.

This means that most of the executives did not participate in making this decision related to Ballmer’s goals of turning Microsoft into a “device and service company,” as he expressed in his annual address to shareholders in October.
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Impending changes — and lack of information about them — have increased the level of tension within Microsoft, as many senior managers have been with the company for a long time.

“It seems that the changes that Steve is going to make will be a very high-profile event,” said a person close to the situation. “For the first time in a long time, there is a feeling that major changes are coming, including personnel changes.”

When the head of Windows, Stephen Sinofsky, left the company last year, this clearly happened with Ballmer's suggestion. Another major reorganization was carried out in 2008.

Other executives who left the company in the past few years were: Kevin Johnson, who became the executive director of Juniper Networks, who worked for 16 years at Microsoft; Jeff Rijks, who joined Microsoft in 1981 and is now director of the Bill & Melinda Gates Foundation; It is also worth remembering the double departure of Robbie Bach, who worked for the company for 22 years, before his departure in 2010, and the veteran who worked for the company for 15 years - Jay Allard, who is still an adviser to Ballmer.

But these were mostly single exits, and Microsoft didn’t see a change like that expected since the large-scale permutations made by former CEO Bill Gates.

That is why, according to another source, the level of anxiety has grown since persistent internal rumors about forthcoming events began to spread, but no real changes have yet occurred. “It will be fun if Ballmer doesn’t do anything in the end,” the source said. “Although no one doubts that change is coming.”

A Microsoft spokesman declined to comment on this information.

According to some individuals close to the situation, after the reorganization, the role of some managers whose structural units will be reorganized into new divisions of the company may increase. But sources say that major layoffs may follow.

Attention is focused on Satya Nadella, President of Microsoft Servers and Tools; Tony Bates, president of the Skype Communications Division; and Don Mattrike, president of the company's entertainment division. In addition, many are wondering how to change the role of Ki Liu, president of Microsoft Online Services, and Terry Myerson, who heads the division of Windows Phone.

It is not yet clear what the new and possibly expanded roles of these and other leaders will be. Everything will depend on the actions of Ballmer.

Many expect that he will soon reveal his plans to the company's employees, even before the end of the fiscal year (July 18). When a public announcement is made is unclear.

One thing is clear - most likely, the company’s structure will be simplified in order to make its undoubtedly confusing structure clearer. The most interesting part of this puzzle will be how the flagship software product from Microsoft - Windows will join the new organization.

A possible reorganization will take place amid growing pressure on Microsoft from investors, including the recent upsurge in stocks and renewed attempts by active shareholders to make some changes to Microsoft.

Next week in San Francisco, the company will hold a conference for Microsoft Build developers, where, among other things, it will demonstrate a series of new initiatives in the field of Windows, Bing and its server products.