Microsoft Reorg: Berkowitz Out, McAndrews Adds Duties

Steve Berkowitz, head of Microsoft’s Online Services unit, will leave the company as part of a new round of executive changes affecting the search and ad businesses. Under the reorganization, three executives including former aQuantive chief exec Brian McAndrews will assume expanded roles.

McAndrews, whose title is SVP of the Advertiser and Publisher Solutions, will oversee an enlarged fiefdom likely to include Berkowitz’s Digital Advertising Solutions group, according to an internal memo from Platforms and Services Division head Kevin Johnson obtained by Om Malik. That memo said McAndrews will also assume control of Audience Solutions, which recruits and supports Microsoft’s ad syndication partners.

Meanwhile, Satya Nadella, head of the year-old Search and Ad Platform Group, was bumped up to SVP, Search, Portals, and Advertising. Nadella will have engineering oversight of Microsoft’s Live Search, Microsoft adCenter, and subscription and billing platforms.

Thirdly, Bill Veghte was named SVP of the new Online Services and Windows group, running all “end-user business strategy, sales and marketing” for the MSN, Search, Windows Client, and Windows Live businesses. He’ll also oversee search marketing and Windows Live marketing, Johnson wrote to staff.

McAndrews, Nadella and Veghte will all report to Johnson and collectively run Microsoft’s business strategy, sales, marketing, and engineering efforts for Windows Live, Search and MSN.

Berkowitz, who joined from Ask.com two years ago, will stay on until August to ensure a smooth transition, Microsoft said.