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Ballmer May Reveal MSFT Restructuring Plan July 1

By - Source: AllThingsD | B 15 comments

The winds of change are blowing in the halls of Redmond.

Unnamed sources told AllThingsD that Microsoft CEO Steve Ballmer will likely reveal a new restructuring plan to a large group of senior executives by July 1. This has reportedly worried many top managers, as Ballmer has not consulted with the wider leadership group, but instead has shared his plans with some of the Microsoft board members and a small group of his direct reports.

Sources claim that most senior executives have been left out of the decision making process relating to Ballmer's plan to swing Microsoft into "devices and services" mode, a plan he detailed in his annual shareholder letter in October 2012. Long-time high-ranking managers have been under stress since then thanks to a lack of information surrounding the impending changes.

Thus, since October, there has been some level of discomfort at Microsoft. The overall underwhelming sales of Windows 8, Windows RT and related devices certainly hasn't helped ease any tensions at Redmond. "It feels like it is going to be titanic -- that Steve is doing this change for his legacy," said one person close to the situation."And it's the first time in a long time that it feels like there will be some major shifts, including some departures."

Another source told AllThingsD that the level of worry has grown, as rampant internal rumors chat about what may or may not come. Microsoft hasn't seen this level of change -- like what is expected to come in the next month -- since Bill Gates ruled the house as CEO. "It would be funny if Ballmer did nothing in the end," said the source. "But no one thinks that’s possible now."

Sources noted that there will be significant departures from Microsoft, and many executives will have larger roles, as business units will be moved around into new divisions. There's reportedly a focus on Satya Nadella, president of Microsoft’s Servers and Tools division; Tony Bates, president of its Skype communications unit; and Don Mattrick, president of its Interactive Entertainment division. Qi Lu, president of Microsoft's Online Services unit, and Terry Myerson, who runs the Windows Phone division, are also in the picture.

Additional reports indicate that Ballmer plans to merge the Windows and Windows Phone groups into one unified team to better manage the constancy between desktop and mobile platforms. Both feature the same kernel, but the company may be shooting for an even more unified platform by merging the two app stores together. 

For what Ballmer said at Microsoft Build 2013, check out our keynote live blog from today!

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  • 0 Hide
    slomo4sho , June 26, 2013 3:05 PM
    Shouldn't it start with replacing Ballmer?
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    teh_chem , June 26, 2013 3:21 PM
    Maybe he restructured himself out of the company.

    I was kind of floored to find out that the character he plays at press events, conferences, and interviews is all an act, and that apparently he's quite normal in day-to-day things.
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    KelvinTy , June 26, 2013 3:55 PM
    It would be titanic if they don't something more user-oriented, the current trend seem way too counter intuitive (for consumers).
  • 0 Hide
    nolarrow , June 26, 2013 4:47 PM
    The should start at the top. *Cough* sup ballmer?
  • 0 Hide
    sykozis , June 26, 2013 5:10 PM
    Restructuring rarely involves removing people that deserve it.... Unfortunately, Ballmer is going to prove this to be true once again if he actually does anything other than firing himself....
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    darkavenger123 , June 26, 2013 6:42 PM
    Unifiy Windows and Windows Phone?? This strategy has already proven a failure. Even Apple leaves it's MacOSX and iOS separate...and the formula has proven successful. What is Ballmer trying to do?? His ego too big to admit defeat and put all the egss into a shaky basket??? He should be the first guy to go if MS is to be saved!!!
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    ioconnor , June 26, 2013 7:40 PM
    Ballmer should retire and join Cheney at the local country club.
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    cats_Paw , June 27, 2013 12:33 AM
    Since this guy is CEO (and voted more than one time worst CEO of the year), Microsoft is going down a drain. Does he have something on Bill gates or something? I mean, i dont see any other reason why he would keep his job.

    Any CEO who dosent consult with their staff is either a visionay or a total fail.
    In case of Balmer, results tell the story.

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    ojas , June 27, 2013 4:30 AM
    Fire yourself, Ballmer! Do it!
  • 0 Hide
    JOSHSKORN , June 27, 2013 4:48 AM
    Wind of Change - Scorpions....Love that song. That's what came to mind as soon as I read the bold text.
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    back_by_demand , June 27, 2013 5:27 AM
    OK some people are saying get rid of Ballmer, as he ruined Windows, but really the fault for that was Sinofski who has since been pushed overboard by Ballmer. You may say that Ballmer should have pushed him sooner to avoid the initial issues but the fact he spotted someone causing an issue and having no hesitation to get rid of him, then motivating a lumbering monolith like Microsoft to do a rapid release 8.1 in just 8 months is an impressive feat. Is it perfect? Absolutely no, but the remedial action has borne fruit already and within a year there will be even more improvements. Ballmer is doing a good job, he placed too much trust in someone elses vision, now he is taking more personal control the ship is course correcting just fine thanks.
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    jamesjones_det , June 27, 2013 9:29 AM
    If it doesn't include him leaving MSFT it's a waste of time...
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    robochump , June 27, 2013 10:58 AM
    Ballmer obviously found a copy of Apple's business plan and will scribble MSFT over the places it has Apple. Then say how revolutionary he is :) 
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    twelch82 , June 27, 2013 1:08 PM
    This might be the nail in the coffin for MS. If I were the board, I'd get rid of Ballmer ASAP.
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    David Huber , July 1, 2013 2:45 PM
    Ballmer is such a bad CEO he needs to be canned!!