Microsoft President Belluzzo To Leave

Belluzzo, 48, will formally leave the positions on May 1, but will continue to work at Microsoft through September.

Company officials also said Microsoft would reorganize into seven divisions, including Windows Client, Knowledge Worker, Server and Tools, Business Solutions, CE/Mobility, MSN, and Home and Entertainment.

The seven divisions will allow their management to exercise comprehensive operational and financial responsibility and give them greater accountability, Microsoft officials said. CEO Steve Ballmer and the company's senior leadership team will coordinate the businesses to ensure integrated solutions for customers.

"Rick has worked closely with me analyzing the company's structure to determine how we could improve our internal processes and maximize opportunities for growth. We realized we needed to give our core leaders deeper control and accountability in the way they run their businesses, while at the same time ensuring strong communication and collaboration across the business units. This is the right decision for Rick, but the company will certainly miss his leadership and experience," said Ballmer in a statement.

Microsoft officials did not say who would replace Belluzzo, who joined the company in 1999 and became president and COO in February 2001. A company spokesman was not immediately available to comment.

Under Belluzzo's guidance, the MSN Internet unit drew millions of new subscribers and visitors and pulled the operation into second place behind industry giant America Online, a unit of AOL Time Warner.

"His leadership on improving internal business systems and his role in the development of key product initiatives including .NET, MSN and Xbox were very significant contributions," Microsoft co-founder and Chairman Bill Gates said in a statement.

Belluzzo, who spent 23 years at Hewlett-Packard before leaving in 1998 to try to lead workstation computer maker Silicon Graphics out of a slump, indicated he was leaving to start his own company.

"Given where Steve and I knew we needed to take the business, I decided it was the right time to pursue my goal of leading my own company," Belluzzo said in a statement.

Shares in Microsoft slipped 97 cents, or 1.7 percent, to $56.33 on the Nasdaq on Wednesday, as earnings warnings from other software makers weighed on the industry. Belluzzo's departure was announced after the close of U.S. markets.

CRN Editor Joe Kovar contributed to this story

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