Microsoft shakes up management
Software giant shuffles top executives and reorganizes company into seven business divisions.
September 20, 2005: 4:54 PM EDT
SEATTLE (Reuters) - Microsoft Corp. overhauled its business divisions Tuesday, installing its top executives as presidents of three business groups as the world's largest software maker faces increasing competition from companies delivering software and services over the Web.
The changes, the most far-reaching since Chief Executive Steve Ballmer realigned the company into seven business divisions in 2002, aim at giving the company "greater agility in the execution of its software and services strategy," Microsoft (Research) said in a statement.
The seven divisions will be consolidated into the new groups.
The first division, Platform Products and Services, will include the company's flagship windows product, as well as the MSN Internet division, and be led by co-presidents Jim Allchin and Kevin Johnson, who until recently served as Microsoft's top sales executive. Allchin, a 15-year company veteran, will retire at the end of 2006, Microsoft said.
Jeff Raikes, currently in charge of the division that includes Office and other business software products, will become president of the Business Division.
Robbie Bach, responsible for launching Microsoft's Xbox video game business, will become president of the Entertainment and Devices division that will also include the company's cell phone software business.
None of the executives were available for comment.
The changes come at a time when Microsoft faces threats in the Internet space from competitors such as Google Inc. (Research) and longtime business software rival Oracle Corp. (Research), as well as the Linux operating system.
"These changes are designed to align our business groups in a way that will enhance decision-making and speed of execution," Ballmer said in a statement.
