Microsoft Overhauls Engineering Structure Into Cloud and Device Divisions
Microsoft reorganizes its engineering operations into two primary divisions focused on experiences and devices, and cloud and AI platforms. The shakeup includes the departure of longtime Windows chief Terry Myerson.
Microsoft announces a major corporate reorganization that splits the company into two primary engineering divisions. One team focuses on experiences and devices while the other centers on cloud and AI platforms. This strategic shift aims to accelerate innovation and eliminate organizational boundaries that hinder customer progress.
The restructuring brings significant leadership changes as Terry Myerson leaves the company after 21 years of service. Rajesh Jha takes charge of the experiences and devices team, and Scott Guthrie leads the cloud and AI group. Additionally, Jason Zander earns a promotion to executive vice president of Azure, and Harry Shum continues to guide a separate AI and research unit.
CEO Satya Nadella explains that the changes align with the company's vision for the intelligent cloud and intelligent edge. The move reflects a broader industry shift away from prioritizing the Windows operating system as a standalone product. Investors respond positively to the news, causing Microsoft shares to rise slightly following the announcement.