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Wednesday, May 26, 2010, 12:55 pm PT (03:55 pm ET)

MacBU moving into Microsoft Business Division

As part of its corporate infrastructure shakeup revealed this week, Microsoft will consolidate its Mac Business Unit — the team that produces software for Mac OS X — into the company's Business Division.

Mary-Jo Foley of CNet revealed this week that MacBU is moving from Microsoft's Specialized Devices and Applications team — where it currently exists with the Embedded, Auto, Surface and Hardware operations. Those teams will remain under the watch of Robbie Bach, president of Entertainment & Devices Division at Microsoft, until his departure this fall.

MacBU is behind the development of Office 2011, the update to its industry standard suite of software. The new version will feature the return of Outlook, built from the ground up in Cocoa for Mac OS X. Office 2011 for Mac is currently in beta, and is due out later this year.

Microsoft this week revealed that both Bach and J Allard, the company's chief experience officer, are leaving the company. In addition to the MacBU team, the major organizational changes will also affect the Windows Phone and Zune products, which compete with Apple's iPhone and iPod.

Microsoft's changes were attributed this week to "bruising competition" from both Apple and Google by The Wall Street Journal. It was also alleged that Allard's departure is related to Microsoft opting to abandon its dual screen Courier concept, a touchscreen tablet project that he spearheaded.