The company is also re-aligning its Windows group to better pursue its ambitions in cloud computing and AI.
Microsoft is in for some big changes.
Satya Nadella, CEO of the software titan, outlined the changes Thursday in an e-mail to employees. The biggest shake-up is the departure of Microsoft veteran and Windows Chief Terry Myerson.
In addition, Nadella is reorganizing the Windows and Devices Group, creating an engineering team focused on "experiences and devices" and another new one tasked with "cloud and artificial intelligence platform."
Microsoft has spent years transforming itself from a company that relied on selling software into one that makes its money by hosting services in the cloud and selling its own hardware. Another newly announced change is naming Panos Panay as chief product officer. Panay has often been the face in device presentations for products like the Surface Book and Surface Pro 4.
Get the full details of the changes from our sister site ZDNet, as well as an explanation of the reorganization here.
Update, 8:45 a.m. PT: Clarifies the reorganization.