Nadella dismantles Microsoft’s decades-old SLT and installs a three-part AI-focused leadership model

Microsoft CEO Satya Nadella has quietly dissolved the Senior Leadership Team that has run the company for decades and replaced it with a flatter, AI-focused set of structures. Several longtime executives are leaving, including Rajesh Jha and Yusuf Mehdi. The changes are intended to speed decision-making amid intensifying AI competition, though markets have viewed the move as a major internal disruption. The overhaul comes after Microsoft shares logged their worst quarter since the 2008 financial crisis, as investors press for evidence that massive AI spending will generate returns.