Microsoft has announced a significant reorganization of its Windows engineering teams, consolidating them into a single unit under the leadership of Pavan Davuluri, President of Windows and Devices. The company communicated this shift in an internal memo to employees, stating the move will simplify development and expedite the integration of artificial intelligence capabilities into the Windows operating system.
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Centralized Structure for Core Development
The reorganization merges teams previously responsible for client and server versions of Windows into one cohesive structure. This unified approach will allow the company to concentrate resources and align efforts with strategic priorities. Leaders of key functional areas, such as Windows Core OS, Data Intelligence, Security, and Engineering Systems, will now report directly to Davuluri.
Historical Context and Current Shift
This consolidation marks a reversal of a 2018 decision, when Microsoft disbanded the original Windows division following Terry Myerson’s departure. At that time, core platform development moved under Azure, while client-focused components joined the newly formed Experiences & Devices group. Although Panos Panay reintegrated some teams in 2020, critical engineering units remained separate until now.
Continued Azure Oversight for Foundational Components
Certain low-level Windows components, including the kernel, virtualization tools, and the Windows Subsystem for Linux (WSL), will remain under the Microsoft Azure division. This arrangement maintains effective technology governance while allowing broader Windows development to proceed under a unified vision.
Focus on an “Agentic OS” Vision
Davuluri emphasized that the structural change supports Microsoft’s ambition to position Windows as an “Agentic OS,” where artificial intelligence assumes a central role in user experience and system functionality. The reorganization places significant responsibility on Davuluri to lead this vision through coordinated engineering leadership.
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