Microsoft just reshuffled its executive deck. Rajesh Jha, the Executive Vice President overseeing Experiences + Devices for over three decades, is retiring effective July 1st, 2026. The move triggers a major reorganization that elevates four leaders to direct reports under CEO Satya Nadella, while promoting three others to EVP and President roles. The transition comes as Microsoft doubles down on AI integration across Windows, Office, and Surface hardware.
Microsoft is entering a new era. After 35 years climbing the ranks, Rajesh Jha - the executive who's steered everything from Office to Windows to Surface devices - announced his retirement this morning in an internal memo obtained by the company blog. He'll step down July 1st but stick around in an advisory capacity, ending one of the longest executive tenures in Redmond.
The timing isn't coincidental. Jha and CEO Satya Nadella have been quietly planning this succession for months, according to the internal communications. What emerges is a flatter structure that pushes decision-making closer to Nadella himself. Four leaders - Perry Clarke, Charles Lamanna, Pavan Davuluri, and Ryan Roslansky - will now report directly to the CEO instead of through Jha's organization. It's a notable shift that eliminates a layer between product execution and strategic vision.
But Microsoft isn't just redistributing the org chart. The company's promoting from within, elevating Jeff Teper to Executive Vice President while bumping Sumit Chauhan and Kirk Koenigsbauer to President roles. Teper's ascent is particularly telling - he's been the driving force behind Microsoft Teams and SharePoint, products that generate billions in enterprise revenue. His promotion signals where Microsoft sees growth: collaboration tools infused with AI capabilities.
The transition period runs through June, giving Jha and his team time to finalize what Microsoft calls "the full cascade of details." That includes aligning operating rhythms, clarifying decision ownership, and restructuring teams ahead of fiscal year 2027. The approach aims to avoid the chaos that typically follows executive departures. "Our intent in taking this approach is to minimize changes and not lose the great momentum we have," Jha wrote in his farewell message.
