Organizational changes are common for many companies, but Microsoft has a well-deserved reputation for orchestrating reorganizations more frequently than most. The software giant was founded in 1975, so they are a young company by some standards, but during the past four decades, they have grown to approximately 100,000 employees. This growth has often been cause for reorgs, but evolving business models and changes in technology often play a role as well.
It’s worth noting that Microsoft was the first technology company of their kind, and they didn’t have the benefit of similar organizations they could emulate. Another factor to consider is that the company started out as exclusively a software company and the employees were either technical or administrative. As the company grew, many of the more senior employees were promoted to management positions, regardless of their management abilities. As the company began to mature, they made a conscious effort to recruit people with management, organizational and operational skills. This resulted in many organizational changes within the company, but since there was still no other software company to emulate, they often implemented changes, only to modify or fine tune them later.