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Executive alignment isn’t just a consideration for nascent businesses. It’s critical to some of the biggest companies on the planet.
Microsoft has shuffled its ranks, moving sales leader Judson Althoff to a larger role as CEO of a new-look commercial organization. Althoff will also oversee a new commercial leadership team with engineering, sales, marketing, operations, and finance departments all represented. In a blog post, Microsoft CEO Satya Nadella said the overarching strategy is to drive growth with commercial and public sector customers by aligning core departments more closely. Undergirding all of it: the AI revolution.
“History shows that general purpose technologies like AI drive step changes in productivity and GDP growth, and we have a unique opportunity to help our customers and the world realize this promise,” Nadella wrote in the post.
Changing formation
The retooled commercial business sees Microsoft CMO Takeshi Numoto reporting directly to Althoff, with the operations team also moving under the new umbrella. Nadella says moving operations into the new structure will “tighten the feedback loop between what customers need and how we deliver and support them.”
Althoff, who was most recently executive vice president and chief commercial officer, is being promoted at a time of renewed focus on commercial and public sector customers.
The AI payoff
Nadella said Althoff’s ascension as CEO of the new organization will allow himself and engineering leaders to focus on other priorities, including AI.
Investors have been looking for signs that the software giant’s heavy AI investment is starting to generate real returns, especially after fiscal 2025 capex totaled over $88 billion.
The good news for leadership: Microsoft exceeded expectations in both revenue and earnings in its fiscal fourth quarter, with CFO Amy Hood posting guidance between $74.7 billion and $75.8 billion for Q1 2026 revenue.
Microsoft did not respond to a request for comment before the time of writing.