Microsoft gets major reorganization amid PC decline

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.