The change leaves Elop, a one-time candidate for the top job at Microsoft, surplus to requirement.
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Daniel Ives, an analyst with FBR Capital Markets, said Mr. Elop’s exit “speaks to Microsoft’s view that Nokia and the overall mobile strategy was clearly not heading down the right path”. Though Surface has begun to catch on with consumers, Microsoft has been unable to gain much headway with its Windows Phones.
Eric Rudder is also leaving the company. Tatarinov oversees Microsoft’s fast-growing $2 billion Dynamics unit, a rival to Salesforce’s customer relations management service. Microsoft ended up acquiring Nokia’s mobile business and brought Elop back on board a year ago.
Following these changes, Microsoft’s Senior Leadership Team totals 12 executives: CEO Satya Nadella, CMO Chris Capossela, EVP for corporate strategy Kurt DelBene, CFO Amy Hood, HR chief Kathleen Hogan, EVP for business development Peggy Johnson, general counsel Brad Smith, COO Kevin Turner, CTO Harry Shum and the divisional chiefs Myerson, Guthrie and Qi Lu.
“We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions”, explained Satya Nadella, Microsoft’s CEO, in an e-mail to employees.
“Today, we are also moving the development teams who build our Dynamics products to C+E, which will enable United States to accelerate our ERP and CRM work even further and mainstream them as part of our core engineering and innovation efforts”, Nadella wrote.
Microsoft Corp. (NASDAQ: MSFT) is looking to shake things up. In April, Microsoft’s Joe Belfiore told The Verge: “There are devices and features that will come not on launch date, but following it”.
A spokesman for Microsoft said there is no change to company’s commitment to its smartphones and other hardware businesses.
“With the structural change..”. While at Nokia, Elop issued his famous “Burning Platform” memo in which he announced the Finnish handset company would switch from its own Symbian operating system. Microsoft shares have risen 9 per cent over the past year.
Some key executives got new roles in the reorganization.
Elop’s role as executive vice-president of the Microsoft Devices Group is being merged with the Operating Systems Group (OSG) to form a new Windows and Devices Group. Myerson will lead a new team, dubbed the Windows and devices group, which will combine the engineering efforts of the current OS and devices groups.