Steven Sinofsky, head of Microsoft's Windows unit and the driving force behind Windows 8 and the Surface tablet, has left the company.
Sinofsky had widely been tipped to be the next CEO of Microsoft and had been at the company for 23 years.
Sinofsky joined Microsoft after graduating from the University of Massachusetts, with a master's degree in computer science. He went on to run the Microsoft Office division for seven years before taking over the troubled Windows division after the disastrous release of Windows Vista. He was widely credited with salvaging Microsoft's reputation with the release of Windows 7.
Microsoft CEO Steve Ballmer said in a statement: "I am grateful for the many years of work that Steven has contributed to the company. The products and services we have delivered to the market in the past few months mark the launch of a new era at Microsoft."
In a memo sent to Microsoft employees, Sinofsky said: "With the general availability of Windows 8/RT and Surface, I have decided it is time for me to take a step back from my responsibilities at Microsoft. I've always advocated using the break between product cycles as an opportunity to reflect and to look ahead, and that applies to me too.
"After more than 23 years working on a wide range of Microsoft products, I have decided to leave the company to seek new opportunities that build on these experiences. My passion for building products is as strong as ever and I look forward to focusing my energy and creativity along similar lines."
Leadership style?
Reuters quotes Pacific Crest Securities analyst Brendan Barnicle as saying: "This is shocking news. Like a lot of people, I thought Sinofsky was in line to potentially be Ballmer's successor."
While analysts say it's it too early to judge the success of Windows 8 and the Surface tablet, Barnicle says it sounds like Sinofsky's departure "had more to do with his leadership style. There really wasn't a next move for Steven at this point."
There has been speculation that his abrasive leadership style and aggressive approach to maintaining control over his products may have made him a divisive force within the company.
However, Sinofsky says: "Some might notice a bit of chatter speculating about this decision or timing. I can assure you that none could be true as this was a personal and private choice that in no way reflects any speculation or theories one might read - about me, opportunity, the company or its leadership."
New era
Ballmer has announced that, effective immediately, Julie Larson-Green will lead the Windows engineering division and will be responsible for all product development for Windows and Windows Live, as well as the Surface tablet.
"Julie has been a stalwart leader of building compelling 'experiences' from her time on Internet Explorer, through the evolution of Office and, most recently, to the re-imagination of Windows. Her unique product and innovation perspective and proven ability to effectively collaborate and drive a cross-company agenda will serve us well as she takes on this new leadership role," says Ballmer.
In addition, it was announced that Tami Reller will head the business and marketing strategy for Windows, including Surface and partner devices.
Gartner analyst Michael Gartenberg says: "It is a little surprising to see a departure of someone at this level in charge of so many products with such immediacy, with no transition period. Microsoft is going to enter another period of management transition."
Sinofsky says he will assist "however needed" with the transition, adding: "I am super excited for what the future holds for the team and Microsoft.
"It is impossible to count the blessings I have received over my years at Microsoft. I am humbled by the professionalism and generosity of everyone I have had the good fortune to work with at this awesome company. I am beyond grateful."
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