MYNORTHWEST NEWS

Microsoft reshuffles to become ‘one’ with no CEO heir apparent in sight

Jul 11, 2013, 8:12 AM | Updated: 10:54 am

Microsoft says it is reshuffling its business to promote faster innovation and a sharper focus on devices and services. The move by the world’s largest software maker comes amid a steady decline in demand for PCs as people turn to tablets and other mobile devices.

Microsoft Corp. CEO Steve Ballmer said in a memo to employees Thursday titled “One Microsoft,” that the changes mean the company is “rallying behind a single strategy” and organizing by function.

Microsoft’s new divisions include engineering, marketing and business development.

The company named veteran executive Julie Larson-Green head of its devices and studios engineering group, overseeing hardware development, games, music and entertainment. She had been promoted in November to lead all Windows software and hardware engineering after Steven Sinofsky, the president of its Windows and Windows Live operations, left the company shortly after the launch of Windows 8.

Terry Myerson will lead Microsoft’s operating systems and engineering group, namely Windows. Qi Lu will head applications and services.

GeekWire’s Todd Bishop acknowledged that many of the leaders at Microsoft are simply “retiring” under the restructuring plan.

Ballmer stressed the company’s focus on “one Microsoft” in his memo. He said Microsoft will move forward operating as a cohesive company rather than a “collection of divisional strategies.”

“Any change like this is just super complicated,” said Bishop. “It’s a company of more than 100,000 people and it’s hard to move that quickly.”

With the retirement of some of Microsoft’s top leaders, once again, there is no “heir apparent” to become the next CEO of the company, when it’s time for Ballmer to step down.

“We’ve actually seen the departure of a number of potential heirs to the CEO position in the years leading up to this massive change,” said Bishop. “For one reason or another – those people leave regularly. And here we’re seeing something that where there is not an heir apparent among these executives.”

Microsoft shares rose 50 cents to $35.20 in Thursday morning trading. The Redmond-based company’s stock is up 32 percent since the start of the year, compared with a 17 percent increase of the Standard & Poor’s 500 index.

An Associated Press report with contributions from MyNorthwest.com’s Alyssa Kleven.

MyNorthwest News

delta sexual assault...

Frank Sumrall

Woman sues Delta Air Lines after sexually assaulted on flight by employee

Last year, a woman was sexually assaulted on a Delta Air Lines flight from Phoenix to Seattle by an airline employee.

17 minutes ago

Photo: Lewis and Clark High School students thought quickly to save their track coach's life....

Julia Dallas

Spokane high school students save track coach’s life after his heart stops

Two Spokane high school students used their quick thinking and past training to save their track coach's life last week.

2 hours ago

Image: Brightly colored eggs are set on a table on the South Lawn of the White House in Washington,...

Ted Buehner

Expect good Easter weekend weather for egg hunts, chilly evening Mariners games

Both Saturday and Sunday of Easter weekend will feature temperatures warming to around 60 degrees across much of Western Washington.

14 hours ago

Taylor Swift performs onstage during the Taylor Swift | The Eras Tour at Lumen Field on July 22, 20...

Micki Gamez, KIRO Newsradio and Bill Kaczaraba, MyNorthwest

Seattle tourism dollars break records following All-Star Week, Taylor Swift

It was a record-setting year for dollars flowing into Seattle from tourists.

15 hours ago

Image: A bridge in Carnation....

Julia Dallas

Carnation frustrated with Seattle again after 8th false emergency alarm induces widespread panic

Carnation citizens have faced a series of panic-inducing alarms after SPU's system for the Tolt Dam falsely sounded eight times.

17 hours ago

Grocery store shopper...

Bill Kaczaraba

Ways to deal with Seattle grocery store sticker shock

Seattle grocery store sticker shock continues to play havoc on locals, but there are ways to counter high prices.

17 hours ago

Microsoft reshuffles to become ‘one’ with no CEO heir apparent in sight