Microsoft (MSFT) is going through with a long-expected reorganization, breaking itself into four customer-focused parts, the Wall Street Journal reported Friday. It's not clear how the new structure relates to the software giant's antitrust woes -- it may be a thinly veiled hint to the Department of Justice of how Microsoft would like to be broken up if it loses at trial. But even the company's poor performance in federal court hasn't hindered its reorg plans: Three of the new division heads -- Jim Allchin, heading up enterprise computing; Bob Muglia, heading up a "knowledge worker" division; and Paul Maritz, heading up a development tools division -- were among DOJ prosecutor David Boies's targets.

The one division that's still headless is a newly created consumer group, which includes the Microsoft Network. Brad Silverberg, a Microsoft executive on semipermanent leave, was offered the job, as was everyone from Yahoo's (YHOO) Jeff Mallett to Disney's (DIS) Jake Winebaum, the Journal said. In the meantime, Jon DeVaan and Brad Chase, both Microsoft marketing veterans, will share the job.

Meanwhile, PeopleSoft (PSFT) is also seeing a shakeup. Howard Gwin was named senior vice president of worldwide operations, replacing Al Duffield, brother of CEO Dave Duffield. Both Duffields may be out the door by the end of the year, depending on how a search for a new top executive at the human resources and financial software maker goes.

PeopleSoft marketing executive Aneel Bhusri may also be eyeing the exit. One sign is his recent appointment to the board of Marimba, an Internet application distribution concern that's aiming to go public soon. Mr. Bhusri stepped down from the board of Vantive (VNTV) last fall, ostensibly to focus more on his day job at PeopleSoft. But in the meantime, he's been investing in small companies like Annuncio -- a marketing automation startup backed by Norwest Venture Partners, where Mr. Bhusri worked as an associate. Could he be heading back as a full partner? Norwest didn't return calls, but Mr. Bhusri does take part in Norwest's side fund.

Check Point Software Technologies (CHKP) recently reorganized its operations, moving its dual headquarters to the U.S. That's a smart move for relations to Wall Street -- before he moved to California, investment bankers found CFO Hagi Schwartz a bit hard to reach in Israel. But it seems to have left Deborah Triant Rieman, CEO of Check Point's U.S. operations, without much of a job -- or a title.

Observers expected Check Point CEO Gil Shwed to reward Ms. Triant Rieman with the top title as the company's U.S. sales boomed. Instead, she's been named director of strategy and business relations. While she'll remain on the board, it's something of a step down for a highly visible CEO in the hot field of network security. Meanwhile, Jerry Ungermann, a recently appointed executive vice president, is handling many of the sales, marketing, and business development responsibilities that Ms. Triant Rieman once held.Last year, Ms. Triant Riemer seemed ahead of the curve.

Annuncio counts Mr. Bhusri among its many connected investors.

Norwest aims for keiretsu

CFOs WEATHER FINANCIAL STORMIf you want a true barometer for future IPOs, take a look at who's appointing chief financial officers. Roy Liu is Toysmart.comas new CFO -- no surprise, given competitor eToys's recent filing of plans to go public. Talk City, a community site, hired Jeff Snetiker, formerly at UPN, to head up its finances. And Software.com, which makes industrial-strength email and messaging software, has hired John Ingalls, a veteran of firewall maker Raptor Systems, as its CFO.

"One thing the company needed was a CFO who had public company experience," says Mr. Ingalls (that would be him, in other words). "They're closer to being ready. And I was looking for a pre-IPO Internet infrastructure company, so I think it's a good fit."

Recruiters say that the CFO position is a hard one to fill, which no doubt has some gleefully making hiring plans involving Regina Sommer, a four-year veteran of Open Market (OMKT). She stepped down earlier this month to pursue personal interests.

"She intends to take the time she needs to pursue other interests and will at a later date decide what her next professional move will be," says a company spokesperson. Will the talent market let her wait that long, though?Why Critical Path's new CFO took a demotion for the job.

IDEA GUYBenchmark isn't the only venture capital firm recruiting new partners away from other firms. Idealab Capital Partners has hired William Quigley of the Mid-Atlantic Venture Fund as its fourth general partner. It's not that big a blow, however; Mr. Quigley had been working at MAVF as a Kauffman Fellow, an elite group of business-school graduates who work two-year stints at venture capital firms.

"The Fellows meet once quarterly," says Mr. Quigley. "The attractive part of it is you're in an immediate network. VC is a contact sport."

As it happens, Mr. Quigley made contact with Bill Elkus, ICP's managing director, at investment bank Donaldson, Lufkin & Jenrette's (DLJ) Internet conference in January. Mr. Elkus said ICP had planned to hire another partner if its fund closed at more than $70 million. (As it happens, the fund closed last month at $105,050,500.)

Mr. Quigley's background -- before attending Harvard Business School, he worked for several years at the Walt Disney Corporation -- is a nice fit with Idealab's Hollywood-meets-Cal Tech convergence model, according to Mr. Elkus.

"Idealab reminds me a lot of the Disney new products team," says Mr. Quigley. "Bill Gross is clearly the conductor there, getting everyone fired up."Bill Gross's Idealab Capital Partners is what happens when you apply quantum physics to venture capital.

TALENT POOLTodd Sotkiewicz is leaving Wired magazine to join BigWords.com -- let's hope he and his startup avoid the fate of former Wired editor Kristen Spence, who joined the now-doomed Purple Moon some years back ... Patrick Burns, VP of strategic alliances at Career Central, has left to form his own venture ... Cooking.com named Donna Bhatia VP of marketing ... CyberSource recruited Eric Wun away from Visa to be its new VP of operations ... EnCommerce closed a $5.9 million round of financing, and signed up a sales and marketing team including Ed Forman, Miguel Nhuch, and Mark Perry ... ETrade (EGRP) chairman Christos Cotsakos joined the board of ePlay ... HandSpring CEO and Palm coinventor Donna Dubinsky recently joined Intuit's (INTU) board of directors -- now that's what we call Pocket Quicken ... Former Starwave executive and Internet Advertising Bureau chairman Rich LeFurgy is working as a venture partner at the Walden International Investment Group, and is also serving on the boards of Lot21 and AdKnowledge. Robert Steinberg is the Pixel Company's new CEO ... Latin Yahoo-buster StarMedia has named CNNfn's Jim Granlund as chief technology officer.