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Microsoft's 'Scroogled' ad campaign has new leader as two top execs leave company (update)

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microsoft logo granite stock 1020
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Microsoft's internal reorganization after the ascension of Satya Nadella to the CEO role continues. Tony Bates, the company's executive vice president for business development and evangelism, and Tami Reller, its marketing chief, are both leaving the company, according to Recode. The moves are expected to be announced next week.

Bates, the former CEO of Skype, had been a top contender for the Microsoft CEO role. Recode reports that Eric Rudder, executive vice president of advanced strategy, will take over Bates' duties while a full-time replacement is sought. Meanwhile, Reller will reportedly be replaced by marketing executive Chris Capossela, who will take over advertising from Mark Penn. Penn, the architect of Microsoft's controversial Scroogled campaign, will now reportedly boast the title of executive vice president and chief strategy officer.

Recode says Penn will explore "new product areas and strategic investments" for the company, while remaining on the team of senior executives that reports to Nadella. Executive shuffles are a natural consequence of changing CEOs, especially when one of those executives has been passed over for the top spot. Now Nadella has two key spots on his executive team to fill — and as he works to transform Microsoft into a cloud-first, mobile-first company, he doesn't have much time to waste.

Updated March 3rd, 2014: Microsoft CEO Satya Nadella has confirmed changes to the company's senior leadership ranks in an email to employees. Bates is indeed stepping down immediately, with Eric Rudder filling in for now until a proper replacement is found. Nadella says that Tami Reller will remain in place until Chris Capossela finds his footing as Microsoft's new executive vice president and chief marketing officer. After that, she will "pursue other interests outside the company." Nadella says these latest changes reflect Microsoft's continued efforts "to find our swing." "We need to drive clarity, alignment and intensity across all our work," reads the CEO's email. Nadella also confirms that moving forward, Mark Penn will serve as Microsoft's chief strategy officer, saying "I am looking forward to applying Mark's unique skill set across a broader set of challenges facing the company."