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CEO Satya Nadella has changed Microsoft’s leadershipstructure, creating a new team. This move aims to prepare Microsoft for the growing importance of artificial intelligence (AI) and strengthen its ability to compete with smaller, faster companies.
Internal documents and sources close to Nadella show that he has retired the senior leadership team, known as the SLT, which included powerful executives. Instead, he formed smaller teams to work more effectively. This step is significant for a company often seen as slow and bureaucratic. To succeed in the fast-paced AI market, Nadella is pushing for a more dynamic approach.
In the past year, Nadella has focused on redesigning the company for AI. He appointed a new CEO for Microsoft’s commercial business and an AI advisor to assist with these changes. Many current leaders were asked to commit to a more demanding work culture or leave.
New teams have already formed, including one that meets weekly to oversee corporate operations. Teams now work closely together, with engineers and designers collaborating more directly. Nadella also reviews AI performance data every week to stay informed.
With this leadership shift, several long-term leaders have left or taken on new roles. Nadella aims to preserve the company’s knowledge during this transition to ensure a smooth changeover.