Microsoft unveils reorganisation

Microsoft chief executive Steve Ballmer said the company is being restructured in what is the first major overhaul for five years.

The software company will be streamlined around devices such as phones, games consoles, and services.

He said Microsoft would be able to react faster to changes in the market.

The move comes amid a decline in demands for personal computers, as consumers turn to tablets and other mobile devices.

In a memo to staff, Mr Ballmer said that the changes meant the company was "rallying behind a single strategy as one company - not a collection of divisional strategies".

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

The company named veteran executive Julie Larson-Green as head of its devices and studios engineering group, overseeing hardware development, games, music and entertainment.

Terry Myerson will lead Microsoft's operating systems and engineering group, namely Windows. Qi Lu will head applications and services.

Under the reorganisation, Kurt DelBene, president of Microsoft Office, will retire, Microsoft said.

:story: BBC News