Microsoft’s Nadella Names Guthrie Cloud Head, Spencer Xbox

Mar 31, 2014 1:11 pm ET

(Updates with positions in second paragraph.)

March 31 (Bloomberg) -- Microsoft Corp. New Chief Executive Officer Satya Nadella announced new leadership roles for Scott Guthrie and Phil Spencer, adding to management moves aimed at rebooting growth in cloud and devices at the world’s largest software maker.

Nadella, who took over as CEO last month, wrote in an e- mail to employees that he had appointed Guthrie to lead company’s cloud and enterprise organization. Spencer will run the Xbox business and former Nokia Oyj CEO Stephen Elop will join as executive vice president of the devices group when Microsoft completes its acquisition of Nokia’s handset unit.

The CEO earlier this month named a chief strategy officer and disclosed the exits of several top executives. Nadella, who was promoted to replace Steve Ballmer, is lining up his leadership team as he seeks growth in devices and cloud services. Nadella is also replacing executives who’ve left after Ballmer’s management overhaul in July and Nadella’s own appointment.

The changes among executives show “how we’re continuing to evolve and tune our organization for maximum focus and impact,” Nadella wrote.

Guthrie, who has been named a new executive vice president, has been the acting head of the cloud unit for the past two months, replacing Nadella.

Spencer, who had previously overseen the company’s video game and television studios, will add Xbox software and the Xbox Live online service and report to operating systems chief Terry Myerson. Marc Whitten, who left Microsoft this month, had previously been responsible for Xbox software and Xbox Live.

CEO Moves

Elop’s role was initially announced in September when Microsoft unveiled the Nokia acquisition and initially included oversight of games and TV studios. Xbox hardware remains in Elop’s group.

Microsoft holds its developer conference, called Build, in San Francisco this week. Last week, Nadella made his first public appearance since taking on his CEO job when he unveiled Microsoft Office software for Apple Inc.’s iPad. At the event, the CEO said he will “hold nothing back” to get the Redmond, Washington-based company’s programs across all devices, in a clear departure from the software maker’s longtime focus on its Windows operating system.