Microsoft made its leadership changes official on Thursday, promoting more than a dozen executives and confirming the departure or pending departure of three top executives.
As expected, Windows VP Mike Sievert, online services senior VP Steven Berkowitz, and Windows Mobile head Pieter Knook are all leaving the company. Knook is heading to a new post at Vodafone, Sievert plans to start his own company, and Berkowitz will stay at Microsoft through August, as his duties transition to other executives.
Microsoft promoted several executives to fill the departures. Bill Veghte moves from VP to senior vice president and adds responsibility for the business strategy for Windows, Windows Live, MSN, and search. Satya Nadella gets a similar title bump and adds programming and engineering oversight for MSN to his search-related responsibilities. Collectively, Vegthe, Nadella and former Aquantive CEO Brian McAndrews will take over Berkowitz's duties.
Filling Knook's role is Andy Lees, who becomes senior vice president of the mobile communications business. The move represents Lees' first mobile-related duties during his long tenure at Microsoft.
Brad Brooks, formerly a general manager in the Windows unit, will take over as head of consumer marketing for the operating system, assuming Sievert's responsibilities.
Roz Ho, former head of Microsoft's Mac unit, will become a corporate VP and lead the Danger team once Microsoft completes that acquisition. Microsoft's press release also notes that Ho will continue in her stealth role leading "various consumer-focused premium mobile offerings in mobile communications."
A Microsoft representative would not offer any further details, but ZDNet blogger Mary Jo Foley notes that Ho has been leading a project known as Pink and Purple aimed at bringing Zune experiences over to Windows Mobile.
Steve Guggenheimer, who had been in application platform marketing, becomes a corporate VP, heading Microsoft's relationships with computer makers.
Developer unit head S. Somasegar and Office executives Chris Capossela, Kurt DelBene, and Antoine Leblond each become senior VPs, but maintain largely their same responsibilities, with four other executives adding the VP title.
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."
Microsoft is expected to announce organizational changes in the coming days, shaking up some of the leadership in its Windows and Windows Live groups, according to sources familiar with the company's plans.
The changes have been in the works for some time, though the exact announcement date has been in flux. The most recent date heard by a couple of sources is next Thursday, though that date is still not firm. (Memo to Microsoft: you've got a lot to learn when it comes to celebrating Valentine's Day.)
Among those expected to be out as part of the shift are Steve Berkowitz, the former Ask.com CEO, who has been senior vice president of Microsoft's online services business, and Mike Sievert, the former AT&T Wireless executive who joined Microsoft in 2005. Berkowitz was hired in spring 2006.
Sievert's expected departure was noted on Monday by ZDNet's Mary Jo Foley, while word of the reorganization was mentioned over the weekend by The Wall Street Journal.
It is not immediately clear whether or when the two are going to leave Microsoft, but their current responsibilities are expected to go to others.
A Microsoft representative declined to comment on the matter. Berkowitz and Sievert could not immediately be reached for comment.
Sievert and Berkowitz were both prominent outsiders in the kinds of roles Microsoft usually fills from within the company.
Both Sievert and Berkowitz have had their roles reduced somewhat in recent months. Berkowitz saw some of his duties shifted to Satya Nadella and Brian McAndrews. An insider said last month that Berkowitz was not necessarily a good fit even in his reduced role. Sievert had been responsible for both Windows product management and marketing when he first joined Microsoft, but Mike Nash was given the product management duties last year.
CEO Steve Ballmer noted at a financial analysts meeting on Monday that Microsoft needs to do a better job of marketing Windows.
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