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Drumbeat about Microsoft reorg grows louder

Juan Carlos Perez | July 10, 2013
A report by the Wall Street Journal says Steve Ballmer may announce a restructuring on Thursday.

Of course, major restructurings and reorganizations are common among large IT vendors, and often the plans end up being so convoluted and hard to implement that they do more damage than good. Sometimes the plans slow down the company or simply prove outright unwise, leading down a path of failure.

An unwanted byproduct can always be that enterprise customers and employees interpret these shakeups as signs that the vendor is in crisis and rudderless, leading them to lose confidence in the companies. Customers then begin to second-guess their decisions to invest in the vendor's products, while employee morale dips and staff turnover increases.

Rumors about the restructuring plan began floating around weeks ago. Microsoft will report its fourth quarter earnings on Thursday of next week.


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