Major Microsoft reorg
Microsoft today announced plans to divide itself into three new business units, each headed by its own president, with a greater degree of autonomy than under the current corporate structure. See this online story for more details, including comments from Steve Ballmer in an interview earlier today.
Another change announced today: Windows chief Jim Allchin plans to retire at the end of next year, after the release of Windows Vista, the next version of the PC operating system.
Ballmer says the changes are intended to make the units faster at making decisions and getting products to market. The company has been criticized by employees and others, most recently in two magazine cover stories, for becoming too bureaucratic and interdependent as it has grown older and larger.
Here's how the new structure works out:
- Microsoft Platform Products & Services Division: Windows, Server and Tools, and MSN. Headed by Kevin Johnson and Allchin, as divisional co-presidents, until Allchin's retirement.
- Microsoft Business Division: Information Worker (Office) and Microsoft Business Solutions. Headed by Jeff Raikes as president.
- Microsoft Entertainment & Devices Division: Home & Entertainment Division and Mobile & Embedded Devices Division. Headed by Robbie Bach as divisional president.
Posted by Todd Bishop at September 20, 2005 12:58 PM
Gee...you know it's a sign of desperation when someone, feeling a downhill slide, reaches into his war chest, and tries an old trick that 'used' to work.
Microsoft has been "splitting into 3 divisions" ever since the halcyon days of Mike Maples. But back then, when their technology was on the rise, it didn't matter what they did. The Microsoft Corporation could have split into a proton and a beta particle for all Wall Street cared and they still could split the stock 2 for 1.
But now...?
