Microsoft plans to reshape the internal structure of the Windows Core Operating System Division, trying to set the stage for smoother operations after Windows Vista's release. CNet News.com has a good summary of the highlights. In the extended body of this post, I'll also put an excerpt of the message Microsoft sent out to explain the changes, for anyone interested in that level of detail.

Completely separately, the company's shares on Thursday reached their highest closing price since November 2004, finishing trading up 2.5 percent, at $28.22. It's often hard to peg these things to one particular event or trend, but the rally follows recent milestones, such as Release Candidate 2, indicating that Microsoft is getting close to finishing Windows Vista after five years of development.

Microsoft said the changes in the Core Operating System Division will take place after Windows Vista is released to manufacturing. A company representative said the changes won't involve layoffs. All of this follows the previous announcement that Jon DeVaan would come in to lead the division. Read on for the company's explanation the groups that will exist inside the division post-Vista.

From Microsoft:

The Windows Core System Team: This team will be led by Ben Fathi (Development), Darren Muir (Test) and Chuck Chan (Program Management). It will be responsible for the Windows Core System, including important innovations in the areas of kernel, virtualization, security, networking and deployment, as well as driving discipline excellence and growing engineering talent across COSD.

The Windows Engineering System and Services Team: This team will be led by Wael Bahaa-El Din. It will be responsible for the Windows engineering system, delivering higher agility and productivity for engineering, as well as delivering a higher quality Windows System for customers.

The PC Hardware Team: This team will be led by Jawad Khaki and will be responsible for working closely with OEMs, ODMs and IHVs to help build a rich set of solutions for customers.

The Trustworthy Computing Team: This team will be led by Scott Charney. It will expand its charter from its Trustworthy Computing (TWC) roots to include Security Engineering efforts, Security Response infrastructure, security outreach and Engineering Excellence investments. These functions, combined with core TWC team and Network Security will create an integrated team focused on delivering against Microsoft's ongoing commitment to Trustworthy Computing.

The Windows Core Architecture Team: This team will be led by Richard Ward and will focus on the Windows architecture, growing technical design across COSD and Windows, as well as growth and alignment of the COSD and Windows architect community.