Microsoft has launched a major management reshuffle as part of company’s CEO Steve Ballmer’s efforts to ramp up its focus on mobile devices in the wake of the steadily declining PC market.

Under the major overhaul, Microsoft is planning to dissolve its eight product units to reshape them into four new ones, which would boost cooperation within the $74bn revenue and 98,000-employee organisation.

Microsoft’s Windows development division will now be converted into a single unit headed by Terry Myerson, who earlier worked only on Windows Phone software, but now has been tasked to modify the OS for devices ranging from PC to tablets and gaming consoles.

The earlier co-chief of the main Windows division, Julie Larson-Green, has been tasked to manage a new hardware unit, which involves devices ranging from the Surface tablet to the Xbox.

Ballmer said that all parts of the company will share and contribute to the success of core offerings, like Windows, Windows Phone, Xbox, Surface, Office 365 and our EA offer, Bing, Skype, Dynamics, Azure and our servers.

"All parts of the company will contribute to activating high-value experiences for our customers," Ballmer added.

Microsoft’s new cloud computing and business-focused products division will now be led by Satya Nadella, who was earlier responsible for Microsoft’s server business.

Almost all of the senior managers have been offered with new roles as part of the reorganisation without any major new hires.