Microsoft's executive shuffle expected Thursday

Updated 10:30 p.m. with comments from Mike Sievert.

I'll say it again. Microsoft has a lot to learn when it comes to celebrating Valentine's Day.

A long-anticipated Microsoft executive shuffle will be formally announced on Thursday, according to sources familiar with the company's plans.

Steve Berkowitz

(Credit: Microsoft)

The move will see three top executives--including two prominent outside hires--leaving the company. Exiting Microsoft are: Senior Vice President Steven Berkowitz, the former Ask.com CEO who had been heading Microsoft's online services unit, and Mike Sievert, the former AT&T Wireless executive brought in to run Windows marketing. Both Sievert and Berkowitz had already seen some duties handed off to others at the company and their departures were largely expected.

Also leaving is Pieter Knook, longtime head of Microsoft's Windows Mobile unit.

Pieter Knook

(Credit: Microsoft)

Knook, Sievert, and Berkowitz were not immediately available to comment. A Microsoft representative declined to comment on the moves.

As part of the changes, Bill Veghte will add Windows Live marketing oversight to his responsibility running the Windows business unit. On the mobile side, longtime server and tools unit executive Andy Lees is headed over to the Mobile and Embedded devices unit.

Other promotions are also expected, though the changes are not expected to result in any major reorganization of the businesses themselves, sources said.

Microsoft has had a checkered past when it comes to successfully bringing in outsiders to top executive posts. The latest departures show that relatively recent hires still struggle to find their way around Redmond.

That challenge will loom large for Microsoft if it manages to acquire Yahoo, which will bring with it no shortage of executives, though some would surely be part of the $1 billion in "synergies" that Microsoft believes it can cut. Microsoft has also placed a large bet on another outsider--former Macromedia CEO Stephen Elop--who is taking Jeff Raikes' role as head of Microsoft's business division.

Mike Sievert

(Credit: Microsoft)

Update: In an e-mail, Sievert said he decided to leave Microsoft over the holidays and plans to start his own company. "When I told the company about my plans, we decided to wait until these other changes to announce my departure, to enable a smooth transition of leadership," Sievert said. His last day is Feb. 29.

"I'm excited about the next adventure but I will miss the challenges at Microsoft," Sievert said. "It is a great company with great people."

[Penguinisto]

Desperation. Pure and simple.

First the lipstick-on-a-pig called Vista. Then, the outrageous ego-train ride to Googleville by trying to buy Yahoo. Then, this.

***, over?

/P

[iertry]

no its not over!

MS do reshuffles like this usually twice a year. Infact alot of companies do it so i cant see ms finishing anytime soon because of a reshuffle

[brocklin]

Penguinisto

Come on Penguin - get real - Ballmer did not really put lipstick on you did he !

[FutureGuy]

hey troll

you apparently work for Google and have nothing much to do with your life. If you are calling MS as being "desperate" you might want to work on your english skills, you apparently don't understand what that word means.

[Yakk35]

Run by MBA's

I see it time and time again, companies run by people with business backgrounds not sales/customer relations or development backgrounds. This always leads to a complete lack of direction because when making money is job one customer satisfaction starts to go by the wayside.

No direction, no focus and no leadership. The only movement is when they copy someone else and Google is beating the living snot out of them right now.

They need to reorganize into small customer and developer centric units that focus on quality not "us too!" as MS copies the software flavor of the year.

Vista is a disaster, Googles dominance and poaching of talent is a DISASTER and the lack of focus and ability to assess the current state of affairs shows no real hope on the horizon for us end users.

[Renegade Knight]

Half Right

When making money is Job 1 the comany normally falls to the wayside. It's fair to call that the MBA mentality (though I've always called it the Beancounter Mentality) it's not fair to paint all MBA's and Business Execs with that brush. If they love the business they are in they will find a way to do well. I won't argue that a lot of MBA types are exactly as you say though.

[ethana2]

"It is a great company with great people."

When that's said by someone who doesn't work there anymore, you know there's gotta be something we're completely missing.

Meh, they're probably still sending him checks for something or other. They've never done any good things for me.

[Kimsh]

translation

Maybe it means he wants to have a go at applying what he knows in a different context (start up not huge company) and he intends to try to take some friends with him.
Has happened before, and probably will again.

[shikarishambu]

It is MBAs not MBA's

You do not need to go to B-school for that :)

[Imperfect Nerd]

Microsoft is hardly soft or micro

Read my lips: Billions of Bucks. Watch them move again: Worldwide Penetration. They're twitching once more: International Complexity. One last time: One Net, One World, no Godfather steering the canoe.

[QASIMARA]

or...?

Apple.