Microsoft exec leaves to head Nokia

Microsoft is losing another key leader. Stephen Elop, who will be the new president and CEO of Nokia.

At Microsoft, Elop led the Business Division, which is mainly the Office software suite. That’s huge. Office makes up about half of Microsoft’s profits.

Nokia is the world’s largest cell phone maker, but they have struggled to compete in the high-end smartphone segment of the business. Nokia fired their CEO Olli-Pekka Kallasvuo.

Some insiders are already calling Nokia’s hiring a mistake , calling Elop a manager but not a product visionary.

Elop is the latest senior manager to leave Microsoft in the past few months. Robbie Bach, head of the company’s Entertainment and Devices Division. J Allard, who oversaw development of the Xbox, retired in May although he is still advising CEO Steve Balmer. Chris Liddell stepped down as CFO last fall to take a job as the top financial guy at General Motors.

(photo courtesy Microsoft)

Balmer sent out this confirmation last night of Elop’s departure:

Sept. 9, 2010

I am writing to let you know that Stephen Elop has been offered and has accepted the job as CEO of Nokia and will be leaving Microsoft, effective immediately. Stephen leaves in place a strong business and technical leadership team, including Chris Capossela, Kurt DelBene, Amy Hood and Kirill Tatarinov, all of whom will report to me for the interim.

The MBD business continues to grow and thrive, with 15 percent growth in the last quarter. It has been good to see the great response to Office 2010 and SharePoint 2010, the growth of our Dynamics business and the way we have been successful in extending all our MBD products and services to the cloud. I appreciate the way that Stephen has been a good steward of the brand and business in his time here, and look forward to continuing to work with him in his new role at Nokia.

Please join me in wishing Stephen well.

Steve