By Shira Ovide
Microsoft Corp. Chief Executive Satya Nadella, after five months
on the job, on Thursday released his definition of Microsoft's
corporate mission and hinted that an organizational shake-up is
coming.
In a roughly 3,000-word email to employees, Mr. Nadella said
Microsoft needed to "hone in on our unique strategy," which he
suggested would differ from the "devices and services" mantra
developed by his predecessor, Steve Ballmer. He said Microsoft at
its core "is the productivity and platform company for the
mobile-first and cloud-first world."
People inside of Microsoft for weeks have been bracing for job
cuts or other major strategy changes, and employees have been asked
to draw up strategy plans for Mr. Nadella, according to Microsoft
workers and others familiar with the company.
In his email, Mr. Nadella said Microsoft planned to spend July
conducting "a dialogue about this bold ambition and our core
focus." He said he asked Microsoft senior executives "to evaluate
opportunities to advance their innovation processes and simplify
their operations and how they work."
Mr. Nadella, who became CEO in February, said throughout July he
and other senior executives "will share more on the engineering and
organization changes we believe are needed." He suggested some
details could be announced July 22, when Microsoft releases
financial results for its fiscal year.
For Mr. Nadella, the first CEO in Microsoft's 39-year history
other than Bill Gates and Mr. Ballmer, this is an important moment
for the new CEO to set his road map. His email Thursday, however,
didn't shed much new light on how his Microsoft would look and act
different than the company of his predecessors.
In the memo, Mr. Nadella said Microsoft would help people be
more productive in work and in life with tools like the Cortana
digital assistant for Windows Phone and computers, and he said
Microsoft would use its position of strength in corporate server
farms to help businesses run more efficiently.
Mr. Nadella also used his memo to defend the company's Xbox
videogame business, which some investors believe is a pricey
distraction. Mr. Nadella said Xbox may not be a core business for
Microsoft, but he said the videogame system has legions of fans and
technology important to other parts of the company.
"Bottom line, we will continue to innovate and grow our fan base
with Xbox while also creating additive business value for
Microsoft," Mr. Nadella wrote.
Write to Shira Ovide at shira.ovide@wsj.com
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