Larson-Green, a corporate VP in Windows, is taking over for Windows President Steven Sinofsky, who has left the company.
Elop's return will see him take over Devices and Studios from Julie Larson-Green who will head to Applications and Services.
Julie Larson-Green to become leader of My Life & Work team, which is part of the company's Applications and Services Group.
Brian Cooley interviews Microsoft's Julie Larson-Green on sensors, services, and new ways of computing and design.
The president of Skype, Tony Bates, would handle acquisitions and relationships with developers, while Windows chief Julie Larson-Green would oversee hardware engineering for the whole company, says Bloomberg.
Julie Larson-Green, corporate vice president of Windows, says the company is having "meaningful discussions" about bringing older features of Microsoft's operating system to Windows 8.
New Windows chief Julie Larson-Green explains why the company felt the need to rethink the basic interface of its popular operating system.
The Nokia boss will take charge of Microsoft's games and hardware, including Xbox, and the soon-to-be-acquired Nokia mobile division.
A Microsoft official confirms the company is planning to trim the number of different versions of Windows in its portfolio.
Headed for the exit, according to Recode, are Tony Bates, who oversees business development, and Tami Reller, head of marketing for the software maker.