Microsoft Corporation (NASDAQ:MSFT) could unveil its plans for restructuring as early as this week, reports All Things D’s Kara Swisher. She says CEO Steve Ballmer is preparing to show how he plans to dramatically restructure the company, and the current plan is to do so on Thursday, although the timing might change.
Ballmer’s Plans For Change At Microsoft
All Things D’s sources said there are a number of things that still haven’t been finalized, simply because Ballmer has been keeping such a tight lid on his plans. He first mentioned his restructuring plans last fall in his letter to shareholders.
Sources told the site that Ballmer’s plan is to create so-called “functional coherence” at Microsoft Corporation (NASDAQ:MSFT). It will likely involve shifting around many of the company’s top executives, possibly repositioning things into their proper places in the company’s product cycles and eliminating functions which overlap.
Possible Changes At Microsoft
Some of the proposed changes are said to include Servers and Tools chief Satya Nadella taking on the new cloud computing and business products unit. Qi Lu, who heads Online Services including Bing, might also take on Microsoft Office and a number of other apps. Julie Larson-Green, co-chief of Windows, could take over devices, including everything from the Surface tablets to the Xbox console. Windows Phone head Terry Myerson could then move to head Windows engineering and platforms.
Other possible changes include Windows CFO and CMO Tami Reller increasing her marketing responsibilities and Skype chief Tony Bates taking over business development and corporate strategy. The fate of Microsoft Office president Kurt DelBene and Microsoft Business Solutions head Kirill Tatarinov isn’t clear in the restructure, although they might be either pushed out or placed under the new divisions headed by others.
COO Kevin Turner could stay on a while until he receives a CEO offer from another company. CFO Amy Hood and HR chief Lisa Brummel are expected to remain in their positions. Chief counsel Brad Smith may also keep the same spot. It’s already been announced that Zynga Inc (NASDAQ:ZNGA) stole Xbox chief Don Mattrick and made him CEO.
Possible Changes In Reporting
There’s also a chance that Microsoft Corporation (NASDAQ:MSFT) will change how it reports profit and loss on its earnings statements. Currently each division reports separately, but if this practice is changed, then it might put an end to investor complaints about divisions which are losing money. Regulators would have to approve such a change before the company could implement it.
Questions Left For Microsoft
One thing some insiders at Microsoft Corporation (NASDAQ:MSFT) say is missing is any details about how the company will speed up its innovation process to keep up with the likes of Google Inc (NASDAQ:GOOG). Also there have been questions about who will replace Ballmer when he retires, and the reorganization doesn’t point to any possibilities as being more likely than others.
There are likely still be other elements of the reorganization that aren’t clear since this isn’t public knowledge yet. Interestingly enough, Ballmer turned to well-respected Ford Motor Company (NYSE:F) CEO Alan Mulally, who has been known for turning major companies around. Of course it’s still unclear what kind of advice he might have received from Mulally.