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Microsoft reshuffles company structure

Thursday, July 11, 2013
Microsoft store inside the Prudential Center mall

FILE - In this Thursday, Aug. 23, 2012 file photo, the Microsoft Corp. logo, left, is seen on an exterior wall of a new Microsoft store inside the Prudential Center mall, in Boston. Microsoft will use its annual developers conference to release a preview of Windows 8.1, a free update that promises to address some of the gripes people have with the latest version of the company's flagship operating system. The Build conference, which starts Wednesday, June 26, 2013, in San Francisco, will give Microsoft's partners and other technology developers a chance to try out the new system before it becomes available to the general public later in the year. (AP Photo / Steven Senne, File)

Microsoft is reshuffling its business in a move that it says will allow it to innovate faster and focus on devices and services.

The move by the world's largest software maker comes amid a steady decline in PC demand as people turn to tablets and other mobile devices.

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

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

The company named Julie Larson-Green the head of its devices and studios engineering group, overseeing hardware development and games, music and entertainment. Terry Myerson will lead its operating systems and engineering group, namely Windows.

Microsoft shares rose 50 cents to $35.20 in morning trading.

(Copyright ©2014 by The Associated Press. All Rights Reserved.)

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