Microsoft merges its hardware and software divisions

Rebecca Lambert
Rebecca Lambert
By Rebecca Lambert on 18 June 2015
Microsoft merges its hardware and software divisions

Microsoft CEO Satya Nadella has made the decision to merge the company’s hardware and operating systems divisions into a single group as part of a shake-up to align Microsoft’s structure to its strategy.

The new Windows and Devices Group, which will be overseen by Terry Myerson – former head of the Operating Systems division – will be responsible for developing hardware including Surface, HoloLens, Lumia, Surface Hub, Band and Xbox, as well as the Windows operating system.

As a result of the reshuffle, Stephen Elop, Nokia’s ex-CEO, will leave Microsoft at the conclusion of a transition period. For the past year, Elop – who rejoined Microsoft when the company purchased Nokia’s mobile handset business – has been primarily responsible for Microsoft’s Lumia devices.

Two other senior figures – Kirill Tatarinov, who led the Dynamics business, and Eric Rudder, executive VP of Advanced Strategy – will also leave the company as part of the reorganisation. And in September, chief insights officer Mark Penn will depart to pursue another venture.

Under the reorganisation, the company’s engineering effort will now be led by three groups: the Windows and Devices Group led by Terry Myerson; the Cloud and Enterprise team, which will absorb the Dynamics development team, led by Scott Guthrie; and the Applications and Services Group led by Qi Lu.

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