Microsoft reshuffles company structure

Updated 12 July 2013
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Microsoft reshuffles company structure

NEW YORK: 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 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.
Ballmer said he was streamlining the software and media company around devices like phones and game consoles and services in its first major overhaul in five years.
The shakeup of the world’s largest software company will result in eight division based on their functions.
Under the reorganization, Kurt DelBene, president of Microsoft Office, will retire, Microsoft said in a statement on its website.
Ballmer said he hoped the new structure would bring products to the market faster and make the company more efficient.
The company is trying to entice people to use Microsoft products, like Word and Office, on a variety of devices rather than just personal computers.
Microsoft has been struggling with sharply declining personal computer sales that cut into its software sales as well as a lukewarm reception for its new Windows 8 operating system.
Ballmer, who took over as CEO from co-founder Bill Gates in 2000, said he wants the company to be more like Apple Inc. The maker of the iPhone and iPad has roared past Microsoft in sales and stock market value in the past few years by smoothly melding its devices with online services such as iTunes.
Microsoft’s last significant reorganization came in July 2008, when Ballmer split the ‘Platforms & Services Division’ into three separate units — Windows, Online Services and Server and Tools. The head of the unit, Kevin Johnson, left Microsoft to join Juniper Networks Inc. JNPR.N, largely taking the blame for the failed attempt to buy Yahoo.


Qatar Airways confirms ‘substantial’ annual loss, blames row with regional neighbors

Updated 1 min 28 sec ago
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Qatar Airways confirms ‘substantial’ annual loss, blames row with regional neighbors

ANTALYA, Turkey: Qatar Airways made a “substantial” loss in its last financial year because of a regional dispute that has banned the airline from four Arab countries, its chief executive said on Wednesday without revealing the extent of the losses.
Qatar Airways has been blocked from flying to 18 cities in Saudi Arabia, the United Arab Emirates, Bahrain and Egypt since June when those countries cut ties with Qatar, accusing it of supporting terrorism. Doha denies the charges.
“We have increased our operating costs. We had to also take a hit on revenues so we don’t think that our results for the last financial year will be very good,” Chief Executive Akbar Al-Baker told reporters at the Eurasia Airshow in Antalya, Turkey.
“I don’t want to say the size of the loss but it was substantial.”
Other parts of the business were profitable though that was not enough to make up for the airline loss, Baker said.
Qatar Airways has several subsidiaries including airport ground handling services and catering units.
The airline had warned of the loss for several months.
The state-owned airline will need another eight weeks to finalize its books and make adjustments before it announces its financial results for the year to March 31, Baker said.
Qatar Airways made 1.97 billion Qatari riyals ($541 million) profit in its previous fiscal year.
Neighboring Saudi Arabia and the UAE were popular routes for Qatar Airways, which has also been banned from the airspace of the four boycotting states.