Microsoft prepping biggest reorganization in its history

Word has hit the web that Microsoft is preparing one of the most significant corporate reorganizations in hits history. Bloomberg heard Steve Ballmer is anticipated to announce the changes as early as next week. Windows chief Julie Larson-Green will reportedly become the head of hardware engineering for the whole company, including the Xbox and Surface division, while Skype president Tony Bates reportedly gets a new function as head of acquisitions and relationships with software developers. Additionally, word also leaked that Windows Phone software chief Terry Myerson would be given added responsibility for Windows operating system engineering under a group combining both businesses.

Microsoft, which is struggling to gain share in mobile phones and tablets, announced a shift in strategy last year for the world’s largest software maker to focus on computing devices and Internet-based services. Restructuring will concentrate units under these areas and also separate product engineering from business functions like marketing and finance, which will get their own groups.

The restructuring isn’t finalized and Ballmer may still shuffle roles around up until it’s officially announced, the people said. Xbox head Don Mattrick had been a contender for the hardware post before left the company to become CEO of Zynga Inc. (ZNGA), a move announced July 1.