Microsoft Shuffles Senior Management

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July 11 (Bloomberg) -- Microsoft, playing catch-up in mobile computing, is reorganizing into fewer units and shuffling senior management roles to speed development of hardware and Web-based services. Cory Johnson reports on today's "Drilldown" on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Microsoft unveils broad restructuring, getting rid of product focused units.

A move the ceo says will stop the company from used -- being a set of violent.

Shipments are in deep decline.

We catch up with him live in sun valley to ask what does he think now.

And think of it as a csi for a crash team.

Federal investigators were to find out what went wrong with ag and asiana flight.

First, to the lead.

Microsoft has announced a sweeping we organization -- reorganization of the company into compete as pe -- pc sales are falling.

Steve balmer is restructuring around hard work, it is generic, finance, and marketing and eliminating divisions for specific products.

In a memo to employees, he said the move will unite microsoft around a single strategy, writing "although we will deliver multiple devices and services to exercise and monetize strategy, the single or strategy will drive us to share goals for everything we do.

We will see our product line holistically, not as a set of violence." the announcement also -- a set of islands." shares are up today.

Joining me now is our editor-at- large, cory johnson.

Do you understand what is going on here you go?

I kind of get it generally.

Reading the memo does not help much.

Microsoft and a time -- anytime iker's office had steve balmer at the helm since he joined the company, he became sole ceo in january 2000 when bill gates said that, microsoft is that a tough time.

The stock has underperformed over that time period.

That was published as days of bubble.

The company has not done the innovative things it initially did that made it so successful post-up -- but --particularly around operating systems.

What steve ballmer talks about is somewhat convoluted.

He talks with these grandiose goals with sentences going on and on.

Is that in itself a problem?

Today's announcement will announce us -- allow us to -- i mean, i think every pr person in the room but a next or five dollars for every phrase they could put in this memo.

But fundamentally, this reduces the divisions that microsoft will be reporting up to the top.

The end of the memo, he says let's go.

But the direction they are going maybe it's not as clear from the memo at least.

Are you disappointed i picked this?

You do not think the jumping around one.

Everybody wants that one.

The other steve balmer, ok, fine.

Greg there it is.

-- there it is.

That is the steve balmerlmer we know.

Explaining this come around and round, -- who are the winners and losers because a lot of people getting new jobs.

Really 100,000 employees.

To try to read through the tea leaves, one of the things about microsoft as they do not have a lot of division heads.

They did not graduate a lot of people.

I heard people up in seattle say that is because they do not have business unit leaders.

Now they will have fewer.

It is interesting that tony great -- tony bates is now going to run m&a, develop relations, so he graduates to a very senior role of this company.

One other thing is that even less clear now who ballmer's successors could be.

You wonder if this was all part of the same thing.

He probably knew what he was going to do or not going to do in this industry.

Maybe it is because microsoft have a better chance to work things out.

He gives fewer division.

Things will work more closely.

Maybe working a lot of divisions is an oddity, not a regular thing.

Ok, cory johnson, our editor- at-large, thank you for trying to break it down there.

Will the new structure help microsoft compete more effectively against rivals like apple and google?

My next guest says it is a step in the right direction.

I am joined by ed mcguire, managing director of an

This text has been automatically generated. It may not be 100% accurate.


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