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Microsoft Re-Structures Leadership, Stephen Elop, Eric Rudder Depart

satya nadella
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Announcing a major internal structural revamp, Microsoft has just announced a slew of changes to its leadership, most notable of them all being Microsoft-Return Stephen Elop’s departure. Most famed for leaving Microsoft for Nokia and then bringing its hardware business under Microsoft, Elop couldn;t complete his two-year long stint.

Satya Nadella, who e-mailed a memo to Microsoft employees, says

We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions. This change will enable us to deliver better products and services that our customers love at a more rapid pace.

Here are some major amendments made by Microsoft to its team –

  • Executive Vice President Terry Myerson will lead a newly formed team, Windows and Devices Group (WDG), focused on enabling more personal computing experiences powered by the Windows ecosystem. This new team combines the engineering efforts of the current Operating Systems Group and Microsoft Devices Group.

In short, Stephen Elop is out. We’ve asked for an exclusive statement from him, and would update this once we receive one.

Satya Nadella notes Elop’s pivotal role in orienting  MDG to create the best Microsoft experience through its devices, inclusive of hardware, software and services. He further mentions,

With the structural change described above, Stephen and I have agreed that now is the right time for him to retire from Microsoft. I regret the loss of leadership that this represents, and look forward to seeing where his next destination will be.

  • Executive Vice President Scott Guthrie will continue to lead the Cloud and Enterprise (C+E) team focused on building the intelligent cloud platform that powers any application on any device.

The C+E team will also focus on building high-value infrastructure and business services that are key to managing business processes, especially in the areas of data and analytics, security and management, and development tools.

As a part of this announcement, the company will move the Dynamics development teams to the C+E team, enabling the company to accelerate ERP and CRM work and bring it into the mainstream C+E engineering and innovation efforts.

  • Executive Vice President Qi Lu will continue to lead the Applications and Services Group (ASG) focused on reinventing productivity services for digital work that span all devices and appeal to the people who use technology at work and in their personal lives.

This means Eric Rudder is out. And looking at the responsibilities which Lu is now taing over, Rudder’s exit seems pretty logical.

Unrelated to all of the structural shake-up,  Chief Insights Officer Mark Penn has decided to pursue another venture outside Microsoft and will be leaving the company in September.

All of these changes, though expected considering Microsoft is reaching to the end of its fiscal year, ahold significance importance, as the Redmond giant, under Nadella’s pro-active leadership steers towards transforming itself into a new-age software giantin a rapidly evolving market.

Post this expected internal re-structuring, Microsoft leadership team  now has 12 members, with CEO Satya Nadella heading the leadership

These changes come at a time when Microsoft is reaching to the end of its fiscal year. Microsoft says that the changes will “help it build at a faster pace, and improve engineering alignment”.

We have asked for statements from numerous outgoers as well as new role-takers, and will update the story once we receive them. Stay tuned.


Senior Writer

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