Microsoft gets major reorganization amid PC decline

Microsoft comes together as 'one'

Reprogramming Microsoft

Peter Power/The Globe and Mail/CP

Microsoft has long operated as if it were several little companies each doing its own thing, from Xbox to Windows.

Last week, the company announced a major reorganization of its structure aimed at making it less fractured, and a bit more like rival Apple, by focusing on three core areas: hardware, software and services. Called “one Microsoft,” it’s meant to foster more collaboration and a more cohesive brand.

Microsoft has already started opening Apple-like stores, and it continues to be a money-maker, with $17 billion in profits last year. But challenges remain. New hardware, such as the Surface tablet, have not been a hit. Most worrisome, its main PC business is in sharp decline. According to a new report by the tech-research firm Gartner, global PC shipments are down for the fifth straight quarter and 11 per cent from last year. And that’s something no amount of corporate reshuffling can cure.