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Ballmer's massive Microsoft overhaul rumoured for Thursday

Microsoft is set to announce a major leadership and business unit shakeup this week, it has been reported.

The restructuring orchestrated by Microsoft CEO Steve Ballmer would result in the creation of a "new cloud computing and business-focused products unit" and a new division encompassing all Microsoft hardware devices, "from Surface tablet to Xbox game player," as well as the company's music and TV services, according to All Things D.

The rumoured cloud computing and business products unit is to be headed by current Server and Tools Business president Satya Nadella; co-Windows chief Julie Larson-Green will be in charge of the device and media services unit; Windows Phone Division boss Terry Myerson will take over Windows; and Online Services Division president Qi Lu, already in charge of Bing, "could add Microsoft Office and other apps to his portfolio," All Things D reported.

Rumours of an impending shake-up first emerged in June, which the software giant declined to comment upon at the time.

Microsoft also declined to comment upon the more recent report suggesting the shakeup would be announced as soon as Thursday.

All Things D, citing "numerous" unnamed sources from inside Microsoft, characterised Ballmer's "plan to drastically restructure the tech giant" as an effort to "create something that is being called 'functional coherence' at the company."

While Nadella, Myerson, Lu, and others are rumoured to be moving up the Redmond food chain, the tech site suggested that Microsoft Business Solutions Division president Kirill Tatarinov and Microsoft Office Division president Kurt DelBene could either find themselves working for new bosses at newly created business units or even pushed "out the door."

Recently appointed CFO Amy Hood's job will remain unaffected, according to the report. Tami Reller, the financial chief of the Windows unit, "is expected to have a larger marketing job," which seems odd, since she's already Microsoft's chief marketing officer.

Finally, under the alleged restructuring, Skype president Tony Bates will be handed "a giant checkbook for acquisitions and other investments" in a new role with "purview over all of business development, corporate strategy and M&A, playing the role of outside guy to Silicon Valley and developers."