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February 15th, 2009 at 2:06 pm

Microsoft confirms an expanded Zune team and mission

zune-family Microsoft confirms an expanded Zune team and mission

Microsoft has quietly reorganized its Zune team, splitting up the hardware and software teams, CNET News has learned.The software and services portion of the Zune team–the bulk of its staff–will be added to the portfolio of Enrique Rodriguez, the vice president who currently runs Microsoft’s Mediaroom and Media Center TV businesses. The hardware team, meanwhile, will now report to Tom Gibbons, who also leads the hardware design efforts within Microsoft’s Windows Mobile unit.

“We’re just being very pragmatic and even more so in a world in which not even Microsoft can afford to over-invest,” Rodriguez told CNET News.The move was made on January 22, as Microsoft made its first-ever companywide layoffs–layoffs which also hit the Zune team, although Microsoft won’t say how many people were cut. It also follows a holiday quarter in which Zune sales dropped by more than half from a year earlier.

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