Trending Now - Nadella Restructures Microsoft Leadership to Boost AI Competitiveness

WHO:

Business Insider - Arun Ulag was promoted to Executive Vice President in April, expanding his role beyond running the data analytics platform Fabric to include a larger role in the company's overall strategy.

Business Insider - Asha Sharma was named CEO of Microsoft Gaming, replacing Phil Spencer.

Business Insider - CEO Satya Nadella, Microsoft President Brad Smith, Chief Financial Officer Amy Hood, Chief People Officer Amy Coleman, Commercial CEO Judson Althoff, DeepMind cofounder Mustafa Suleyman, Chief Technology Officer Kevin Scott, Yusuf Mehdi, Rajesh Jha, Charlie Bell, Hayete Gallot, Asha Sharma, Phil Spencer, Sarah Bond, Arun Ulag, Pavan Davuluri, Jacob Andreou, Ryan Roslansky.

WHAT:

Business Insider - Microsoft has created a new engineering leadership group consisting of roughly 35 engineering and product leaders.

Business Insider - Charlie Bell is now listed as simply "engineer" with zero reports on a recent organizational chart.

Business Insider - Satya Nadella has dismantled the senior leadership structure at Microsoft, creating a new inner circle and a startup-style operating model.

Business Insider - Microsoft has approximately 220,000 employees.

Business Insider - Nadella appointed a new CEO for Microsoft's commercial business in October and a new AI advisor in November.

Business Insider - Nadella's new corporate leadership team meets weekly and focuses on companywide operations and governance.

Business Insider - A new Copilot leadership team has been established, consisting of Charles Lamanna, Jacob Andreou, and Ryan Roslansky.

Business Insider - Nadella personally reviews AI metrics weekly.

Business Insider - Rajesh Jha is set to retire when Microsoft's next fiscal year begins on July 1.

Business Insider - Yusuf Mehdi announced he is leaving Microsoft after transitioning to a role focused on reimagining Windows for the agentic era through the next fiscal year.

WHERE:

Business Insider - Microsoft is headquartered in Redmond, Washington.

WHEN:

Business Insider - Nadella appointed a new CEO for Microsoft's commercial business in October and a new AI advisor in November of the previous year.

Business Insider - Rajesh Jha is set to retire when Microsoft's next fiscal year begins on July 1.

Business Insider - Yusuf Mehdi will help reimagine Windows for the agentic era through the next fiscal year.

WHY:

Business Insider - Nadella's restructuring aims to modernize Microsoft's gaming business and elevate newer executives over long-tenured veterans.

Business Insider - Nadella aims to transform Microsoft to compete effectively in the AI era, as the company's size has become a disadvantage.

Business Insider - The restructuring is a response to investor pressure following Microsoft's worst stock quarter since the 2008 financial crisis.

HOW:

Business Insider - Nadella has expanded the accelerator meetings to allow rank-and-file workers to surface ideas and insights directly to executives.

Business Insider - Nadella is implementing a flatter organizational structure with smaller teams to enhance agility and responsiveness.

Business Insider - Nadella has expanded accelerator meetings to allow rank-and-file workers to surface ideas and insights directly to executives.

(UPDATED May 22, 2026 21:30 UTC)

Microsoft has announced significant changes in its leadership, promoting Arun Ulag to Executive Vice President and naming Asha Sharma as the new CEO of Microsoft Gaming, taking over from Phil Spencer. The company has also formed a new engineering leadership group made up of about 35 leaders, while Charlie Bell's role has been simplified to "engineer" with no direct reports. These moves are part of CEO Satya Nadella's strategy to modernize the gaming division and empower newer executives, alongside expanding accelerator meetings to encourage input from all employees.

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(UPDATED May 22, 2026 13:49 UTC)

In a significant shake-up, Microsoft CEO Satya Nadella has dismantled the company's senior leadership structure, creating a new inner circle and adopting a startup-style operating model to enhance agility and responsiveness. This restructuring, which includes a new Copilot leadership team and weekly meetings focused on operations and governance, comes as a response to investor pressure following Microsoft's worst stock quarter since the 2008 financial crisis. As part of these changes, Rajesh Jha is set to retire when the next fiscal year begins on July 1, while Yusuf Mehdi will transition to a role aimed at reimagining Windows for the agentic era through the next fiscal year.