CEO Satya Nadella overhauled Microsoft’s senior leadership structure to compete more effectively in the global AI race. The company retired its decades-old Senior Leadership Team (SLT) in favor of smaller, flatter groups.
This startup-style operating model aims to increase agility and accelerate decision-making. The restructuring responds to rapid AI development and pressure to generate returns on massive AI investments.
The new structure reduces managerial layers to bring engineers, researchers, and product teams into closer coordination. Microsoft is elevating new leaders and transitioning long-tenured executives to consolidate focus on core AI products like Copilot.