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Elop and Others Leaving Microsoft, Myerson Taking Bigger Role

jones_supa writes: Former Nokia CEO Stephen Elop and "Scroogled" mastermind Mark Penn are leaving Microsoft as part of a fresh company reorganization. "We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions," says CEO Satya Nadella in an e-mail to employees today. Alongside Elop and Penn, Microsoft executives Kirill Tatarinov and Eric Rudder will also leave as part of a transition period. Tatarinov used to head up Microsoft's business solutions group, and Ruder was responsible for the company's advanced strategy. The reorganization will see Windows chief Terry Myerson take on more responsibility. Myerson will take over a new team called Windows and Devices Group. He will be focused on Microsoft devices and the engineering of Windows.

34 of 121 comments (clear)

  1. Elop just fulfilled his destiny. by ArmoredDragon · · Score: 5, Insightful

    You misunderstand. Stephen Elop just fulfilled his destiny created by Steve Ballmer: Appear competent while being incompetent, and destroy the world's largest handset manufacturer by making sure it never picks up Android so that it becomes an easy takeover target.

    Now that his destiny has been fulfilled, Microsoft no longer needs his services.You misunderstand. Stephen Elop just fulfilled his destiny created by Steve Ballmer: Appear competent while being incompetent, and destroy the world's largest handset manufacturer by making sure it never picks up Android so that it becomes an easy takeover target.

    Now that his destiny has been fulfilled, Microsoft no longer needs his services.

    1. Re:Elop just fulfilled his destiny. by ArmoredDragon · · Score: 5, Insightful

      Oops major editing mistake, now I appear incompetent.

    2. Re:Elop just fulfilled his destiny. by gstoddart · · Score: 2

      Honestly, I'm willing to believe that actual incompetence plays a large factor here.

      Yes, Microsoft was pretty much always going to fuck over Nokia with the "all Windows all the time" crap they did. That was pretty transparent.

      But that doesn't mean neither Elop nor Ballmer weren't incompetent.

      Elop could have been both incompetent and a plant intended to shift Nokia to Microsoft stuff. In fact, I assume that's the case.

      --
      Lost at C:>. Found at C.
    3. Re:Elop just fulfilled his destiny. by cfalcon · · Score: 4, Funny

      ...so did you just fulfill a destiny created by Steve Ballmer?

    4. Re:Elop just fulfilled his destiny. by trabby · · Score: 2

      Yep he has a history of this, see what he did to Macromedia before Adobe bought it up. It was well overvalued when Adobe got it.

    5. Re:Elop just fulfilled his destiny. by Ralph+Wiggam · · Score: 4, Insightful

      So Nokia's board, who hired Elop, and the CEOs before Elop, have absolutely no blame in Nokia's downfall?

    6. Re:Elop just fulfilled his destiny. by Ralph+Wiggam · · Score: 3, Informative

      Adding to my previous comment-

      Here's Nokia's stock price over the last 20 years. Stephen Elop became CEO is late 2010, right when the stock price hit 10. Of course it got worse, but you can see that Nokia was on its way out before he showed up.

      http://finance.yahoo.com/echarts?s=NOK+Interactive#{"range":"max","allowChartStacking":true}

    7. Re:Elop just fulfilled his destiny. by chill · · Score: 4, Insightful

      Great! You're now qualified to announce that you'll be running for President on the Republican ticket in 2016. Best of luck and may the best sound-bite or hairpiece win!

      --
      Learning HOW to think is more important than learning WHAT to think.
    8. Re:Elop just fulfilled his destiny. by gbjbaanb · · Score: 3, Insightful

      four negatives in a row

      I believe this is easily parsed:

      Stephen Elop, Mark Penn, Kirill Tatarinov and Eric Rudder.

    9. Re:Elop just fulfilled his destiny. by CptPicard · · Score: 4, Interesting

      In hindsight, I am actually starting to feel that the Microsoft move was the right one exactly so that Nokia could make their handsets a takeover target. Devices were quickly becoming commoditized; Nokia had not managed to create a content ecosystem; and as yet another Android manufacturer they could not have brought much more to the table than companies like Samsung.

      Of course WP hasn't taken off, but that Nokia managed to offload its handset business to MS in time was genuinely a positive thing for for company. Most importantly the patents were kept in the company, and the networks business seems to actually have more future growth potential for a strong engineering company than rectangles any Chinese firm can churn out at massive quantities.

      I'm a happy shareholder since 2012.

      --
      I want to play Free Market with a drowning Libertarian.
    10. Re:Elop just fulfilled his destiny. by Uecker · · Score: 4, Informative

      The networking unit had trouble at that time. The smartphone unit was highly profitable and growing faster than the competition in absolute sales (the quarterly reports are all available). And yes, i don't deny that Nokia had problems before in this area (despite profits and growing sales), but "on its way out" is far from the truth. The numbers simply do not support this. If your sales grow faster than from your competition while you are profitable you are clearly not "on the way out".

    11. Re:Elop just fulfilled his destiny. by sootman · · Score: 2

      Thanks for tarnishing Slashdot's previously unblemished reputation for flawless editing. :-/

      --
      Dear Slashdot: next time you want to mess with the site, add a rich-text editor for comments.
    12. Re:Elop just fulfilled his destiny. by Ralph+Wiggam · · Score: 2

      Either the Board of Directors hired him to "gut things", or they hired him to improve the company, and then sat there doing nothing while he did the opposite. Either way, they're responsible.

    13. Re:Elop just fulfilled his destiny. by Uecker · · Score: 2

      No. What does this have to do with what I said? The stock price depends on a lot of things. But yes, one of the reasons the stock price was low was certainly that Nokia was underperforming in the smartphone market relative to the expectations investors had. But this is something else than being "on the way out" which would imply that they already essentially lost. If you add more sales than your next best competitor and are profitable you are obviously not "on the way out", even if you disappoint Wall Street. Nokia was on "on the way out" the moment they decided to switch to Windows Phone. Just look at the slashdot comments when this was announced: It was entirely predictable that this strategy will fail.

  2. Mastermind? by PvtVoid · · Score: 4, Insightful

    Calling the guy who came up with Scroogled a "mastermind" is a bit of a stretch, if you ask me.

    1. Re:Mastermind? by Jason+Levine · · Score: 2

      But it is impossible; editors are apparently compelled by some powerful force to cut corners continuously, even without any information theory analysis of how many corners would be too many.

      I believe the cutting-corners kind of thinking runs along these lines: "We cut ONE_THING and our profits went up 2%. If we cut TWENTY_MORE_THINGS, we'll have 40% more profits!" Somehow, they fail to realize that cutting everything won't get you more and more profits. Cutting out one or two inefficiencies? Sure, that'll boost your profits. Cutting out an important thing? That might result in a temporary profit boost (which might be enough for an executive who's looking to raise stock prices until he bails). Cutting out a lot of important things will just result in chaos and losses (both people leaving and money intake dwindling).

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  3. "our three core ambitions" by roc97007 · · Score: 4, Funny

    Apparently, one of which is to become a much smaller company.

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    1. Re:"our three core ambitions" by sconeu · · Score: 2

      Fear, surprise, and ruthless efficiency.... and an almost fanatical devotion to the Pope.

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    2. Re:"our three core ambitions" by Impy+the+Impiuos+Imp · · Score: 2

      "Scroogled" mastermind Mark Penn are leaving Microsoft as part of a fresh company reorganization. "We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions,"

      Hard lessons learned the hard rather than easy way:

      1. Innovate rather than copy and spread FUD, check!
      2. Don't attack in advertising ("Scroogled") a beloved thing like Google, check! Burger King learned this the hard way in the 1970s.
      3. Hiring managers who fiddle while Rome burns, then leave with the gold parachute, check! Jobs grabbed by the balls, while other managers coast waiting for their 7 years to be up and retire. Best to retire in a company 80% of what it was than risk upsetting it.

      I would recommend Microsoft cancel planned ads talking about what jackasses Scarlett Johansson and Robert Downey, Jr., are.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  4. Translation by pteddy · · Score: 2

    "We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions" is CEO speak for, "We fired some folks."

  5. I Used to Work For Microsoft by Anonymous Coward · · Score: 2, Interesting

    ...and then I left. Like a lot of people, I thought working at Microsoft would be great. A chance to work for the mothership, as it were. I duly applied, made it through my three interviews, was hired and began work. Almost immediately, I noticed how fractured the company was internally. They had no real mobile strategy and still don't. I noticed the backbiting and political shenanigans that plague most businesses were present as well. Internally, Microsoft is very poltical, much more so than I imagined. So much so, in fact, I felt awkward from day one until I left.

    The company is a good place to work if you like high structure and a very real and very apparent hierarchy. I neither want "high" structure or a political leadership environment. There are some very talented people there. To me, it all felt as if they were grasping at straws because they know the Office/OS gravy train is coming to an end sooner or later and no one really has any concrete ideas. Everything coming out of Microsoft in the last several years makes them appear to be an also-ran.

  6. I have an idea by slashmydots · · Score: 2, Insightful

    Here, let me run MS for a second.
    - Fire everyone responsible for Windows 8's design
    - Fire anyone who thinks charging for products over time is a good idea
    - Fire anyone responsible for UEFI and attempt to press criminal and civil charges against them for it
    - Fire all H1B workers and hire Americans or green card citizens
    - Fire anyone who thinks releasing a new mega-update to Windows every year is a good idea and strongly suggest they go work for Apple
    - Fire anyone who thought touchscreens would take off as a primary input method for laptops because they're too stupid to be a functional human being let alone do their job

    Problem solved!

  7. Food for thought by DrPeper · · Score: 2

    Ok, so NOBODY ever leaves a position of power and/or authority of their own will. History is replete with a plethora of examples of this. The only way people leave positions of power is by force. Usually arrest, assassination, or execution. So WHO has enough power to force these MICROSOFT executives to leave? I find the explanation that they did so of their own free will not supported by history. I'm also quite aware that they will be paid handsomely to leave, but this is always just a front to make the appearance of an amicable separation. Please realize that Elop, unarguably, RUINED Nokia in order to get on the board of Microsoft. He left THOUSANDS of employees without jobs. So who has enough power to dethrone a person of this ruthless character?

  8. Does he really talk like that? by QuietLagoon · · Score: 4, Insightful

    Nadella said in an email to employees: "We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions. This change will enable us to deliver better products and services that our customers love at a more rapid pace."

    And is he really under the impression that customers love Microsoft products?

    .
    Most of the Microsoft customers I talk to use Microsoft products either because they are required to do so at work, or the Microsoft product came with the computer they bought.

    I have yet to hear one customer use the word "love" in relation to any Microsoft product.

    1. Re:Does he really talk like that? by ljw1004 · · Score: 2

      I have yet to hear one customer use the word "love" in relation to any Microsoft product.

      Let me "google" that for you:
      http://www.bing.com/search?q=i...

  9. Re:Let's start an Elop POOL! by SlashDotterOne · · Score: 2

    Ok so let's start a pool! Where is Elop going next??? I've got the Apple, Google, and government squares. Who's next?

    Facebook !

  10. Re:Let's start an Elop POOL! by DrPeper · · Score: 2

    BRILLIANT!!!!

  11. Re:Why no quote from John Thompson? by Anonymous Coward · · Score: 2, Interesting

    When he ran Symantec...

    And he is now running us into the ground like he did them. Symantec's products are terrible, and he has decided to make our products horrible to. That is Thompson's game. He fires all of the good people and replaces them with morons that work cheap and are picked because they're a minority. AA has destroyed my department. Over the past year, I think I've interviewed about 150 developers. Only one was competent. This month, we're only hiring women. So, now I have five female developers on my team that will never be able to contribute. Thompson has destroyed another good company.

  12. Re:Microsoft will fall by CastrTroy · · Score: 2

    Exactly. When there's plenty of $200 or cheaper Android and Windows Phone devices that do a very good job, it's not going to be long before people refuse to pay $700 for and iPhone. I'm surprised they've lasted as long as they have. There is no reason to pay such a high price for a phone. I don't see any with really compelling features. Perhaps the Lumia 1020 with it's 41 megapixel camera has a feature that no other phone does, but other than that, there doesn't seem to be a single phone out there that can do something that a $200 phone can't do. They're really doing to have to start offering real hardware differences like perhaps a real SSD inside the phone, or a phone that can run desktop software (even if it only works when you plug it in) if they want to continue asking $700 for a phone.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  13. Re:Let's start an Elop POOL! by starkadder · · Score: 2

    I hope he goes to Comcast. I really, really do.

  14. Re:Let's start an Elop POOL! by Dragonslicer · · Score: 2

    HP? They seem to like to hire complete failures.

  15. Re:Microsoft will fall by lgw · · Score: 3, Insightful

    Apple hasn't charged a premium for a better phone since maybe the first iPhone. It's just modern jewelry. And when you're buying a status symbol, as long as it's distinctive it's worth what you paid for it. Like a mechanical watch, an iPhone says "marvel at my disposable income and middle-class buying habits".

    --
    Socialism: a lie told by totalitarians and believed by fools.
  16. More than just incompetence: Extreme incompetence. by Futurepower(R) · · Score: 2

    "... actual incompetence plays a large factor..."

    You are not the only one who thinks that.

    The cover of the January 16, 2013 issue of BusinessWeek magazine has a large photo of Microsoft CEO Steve Ballmer with the headline calling him "Monkey Boy". See the BusinessWeek cover in this article: Steve Ballmer Is No Longer A Monkey Boy, Says Bloomberg BusinessWeek. The BusinessWeek cover says "No More" and "Mr.", but that doesn't take much away from the fact that the magazine called him Monkey Boy -- on its cover.

    Worst CEO: Quote from an article in Forbes Magazine about Steve Ballmer: "Without a doubt, Mr. Ballmer is the worst CEO of a large publicly traded American company today."

    Another quote: "The reach of his bad leadership has extended far beyond Microsoft when it comes to destroying shareholder value -- and jobs." (May 12, 2012)

  17. It's the legacy of tight arbitrary rules by dbIII · · Score: 2

    Don't blame the feminists for some overboard policy designed for unwanted rapid correction instead of a sensible hiring policy that merely insists women be given fair consideration for a job along with all the guys.
    There's plenty of other HR idiocy in large places to show where the problem really lies, typically empire building and pointless busywork for HR to maintain headcount and have power in the org.