How, exactly, does this top-level re-organization change what happens on the ground, where products are built? I fail to see what an organizational change does here that improves product creativity and collaboration across teams. I can't imagine their chief problem was "if only our superiors had different reporting structures, then we could get along with ABC team from 123 group."
In dysfunctional organizations people are sometimes not allowed to talk across org silos. It's horrific.