Microsoft shakeup: Former Nokia boss Elop to depart

Nadella: Right time for Elop to retire

Microsoft announced on Wednesday changes to its senior leadership team to "reinvent productivity and business processes, build the intelligent cloud platform, and create more personal computing." (Tweet This)

The company's stock price was down slightly after the announcement. (Click here for the latest price.)

"We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions," CEO, Satya Nadella said in statement. "This change will enable us to deliver better products and services that our customers love at a more rapid pace."

Stephen Elop, a former CEO of Nokia, will leave the company after a transition period. Kirill Tatarinov and Eric Rudder will also leave as a result of the organizational moves. Following the changes, the senior leadership team will have 12 executives.

"With the structural change described above, Stephen and I have agreed that now is the right time for him to retire from Microsoft," Nadella said. "I regret the loss of leadership that this represents, and look forward to seeing where his next destination will be."

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Elop, once considered a successor to former Microsoft Chief Executive Steve Ballmer, joined the company to run its devices business after Microsoft bought Nokia in 2013.

Chief Insights Officer Mark Penn will also leave the company in September to form a private equity fund, in a move unrelated to the restructuring change.

Executive Vice President Terry Myerson will lead a new team, Windows and Devices Group, to focus on personal computing by the Windows systems.

Microsoft did not immediately respond to a CNBC request for comment from the departing executives.

—Reuters contributed to this report.