Microsoft replaces its chief people officer to rethink performance reviews: Report

Kathleen Hogan will be replaced by Amy Coleman, a Microsoft HR executive who had worked in the company for 25 years.

Microsoft is replacing its chief Ppeople officer (CPO) after rethinking its performance review process.

Amy Coleman is a Microsoft HR executive who had worked in the company for 25 years. (Microsoft)

As a result, Kathleen Hogan, who held the title, will be shifted to a new role as executive vice president of the “Office of Strategy and Transformation,” Business Insider reported.

She will be replaced by Amy Coleman, a Microsoft HR executive who had worked in the company for 25 years, across engineering, sales, marketing, and business development, according to the report.

"As we've seen time and again throughout our 50-year history, times of great change for the world and for our industry require us to have a mindset that enables us to continually adapt and transform ourselves," the report quoted CEO Satya Nadella as having written in a company email, announcing the change.

He added that “there's no question that we are at the forefront of another such moment, with the rapid changes across every industry and business function in this AI era.”

When Nadella took the company's helm in 2014, one of his first leadership moves was to name Hogan as Microsoft's CPO.

Hogan has spent over 20 years at Microsoft, and came with prior experience as a McKinsey partner in Silicon Valley, and a development manager at Oracle, Nadella had written in his mail.

This announcement comes after Microsoft fired close to 2,000 employees in January and February, deeming them as low-performers, according to the report.

Coleman on the other hand is likely to have a big impact on the redesign of Microsoft's performance review process, according to the report.