Microsoft makes sweeping overhaul of HR organization, internal memo shows

In a significant shift aimed at optimizing its human resource operations, Microsoft has announced a comprehensive restructuring of its HR department, as revealed in an internal memo from Chief People Officer Amy Coleman. The memo outlines the need for the HR team to evolve in response to the fast-paced changes in technology, work practices, and organizational needs. Coleman, who took on the chief people officer role in March 2025, emphasized that the current operating model is no longer sufficient. "The pace of change is exceeding what our current operating model and decision rhythms were built for," she stated. Rather than focusing solely on stability, the company is now prioritizing adaptability to meet the evolving demands of its workforce. As part of this reorganization, several key leadership changes have been announced. Lindsay-Rae McIntyre, the current Chief Diversity Officer, will depart Microsoft on March 31 to pursue a new opportunity as a Chief People Officer elsewhere. Her responsibilities will be assumed by Leslie Lawson Sims, who has been promoted to Vice President of People & Culture, tasked with enhancing both the HR team's effectiveness and the overall company culture. This restructuring follows a series of performance reviews last year that resulted in the dismissal of 2,000 employees deemed low performers. Coleman's appointment coincided with a broader trend in the tech industry, which is shifting towards more stringent performance evaluations and less leniency towards underperformance. Under Coleman's leadership, Microsoft has introduced a new policy requiring employees to return to the office three days a week, marking a significant shift in workplace dynamics. Her predecessor, Kathleen Hogan, who led the HR department for a decade, has transitioned to a new role focusing on strategy and transformation. The recent HR changes are also part of Microsoft's broader strategy to reshape its product development and funding approaches in the age of artificial intelligence. The company has consolidated teams working on its Copilot AI tools and appointed a new executive to oversee these initiatives. Additionally, new leaders have been promoted to manage key business areas such as Office, Teams, and Windows, as Rajesh Jha prepares for retirement. The memo further details the creation of a unified Engineering HR team led by Mel Simpson, aimed at enhancing collaboration with engineering leaders. Additionally, the Employee Experience team will now integrate closely with People Analytics to drive AI-powered transformation across Microsoft. As Microsoft continues to adapt to the changing landscape, the focus will remain on aligning human resource initiatives with business objectives, ensuring that the company remains competitive in attracting and retaining top talent. Coleman expresses optimism about the future, encouraging the team to embrace new challenges and enhance Microsoft’s work environment for all employees.