Microsoft's Major Reorg: Ballmer's Email

Tickers in this article: MSFT

NEW YORK (TheStreet) -- The major Microsoft reorganization letter is out, and it's pretty shocking to say the least.

The letter itself is extremely long, and outlines CEO Steve Ballmer's plans for the Redmond, Wash.-based technology giant going forward. It's an incredibly detailed, and comprehensive email, so it's clear that this change has been in the works for some time coming.

The major point is that Microsoft's groups will be working closer together, and some major executives will be shifting roles, and in some cases, departing. The company is going to shift more toward combining software and hardware together.

"We are rallying behind a single strategy as one company -- not a collection of divisional strategies," Ballmer wrote in the email. "Although we will deliver multiple devices and services to execute and monetize the strategy, the single core strategy will drive us to set shared goals for everything we do."

The company is going to organize in to the following functions: Engineering, Marketing, Business Development and Evangelism, Advanced Strategy and Research, Finance, HR, Legal, and COO. Engineering will incorporate Windows, Xbox One, Windows Phone, Apps, Cloud and Devices, making it Microsoft's most important division.

In this subset, Terry Myerson will lead the Operating Systems Engineering Group, which is responsible for operating systems. Julie-Larson Green will lead the Devices and Studios Engineering Group. Qi Lu will lead the Applications and Services Engineering Group. Satya Nadella will lead the Cloud and Enterprise Engineering Group.

As part of the changes, Kurt DelBene is retiring from Microsoft. Craig Mundie is moving away SLT and moving toward an unnamed "special project" for Ballmer, ultimately leaving at the end of 2014. Rick Rashid is smoving away from Microsoft Research, into helping drive operating system innovation.

--Written by Chris Ciaccia in New York

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