Microsoft announced Nokia chief Stephen Elop will take the role of Executive Vice President of Microsoft's Devices group, one of three appointments made by the company's new CEO, Satya Nadella.
Elop, the head of the Finnish smartphone maker acquired by Microsoft for $7.2 billion, will report directly to Nadella. Microsoft says the Nokia deal is expected to close by April.
Meanwhile, Phil Spencer will take over as the head of Xbox, managing Xbox, online service Xbox Live, as well as Microsoft Studios development team.
"Combining these teams will strengthen the connection between some of the world's most innovative creators and those building the Xbox itself," said Spencer in a statement explaining the merger of the Xbox teams.
Scott Guthrie will lead the company's Cloud and Enterprise division.
The leadership changes are among the first for Nadella, who was named CEO of Microsoft in February. Last week, Nadella made his first public apperance as CEO when announcing Microsoft's software suite Office would be available on Apple's iPad.
"Recently, I've discussed with the Microsoft leadership team the need to zero in on what truly makes Microsoft unique," said Nadella in an email to employees announcing the leadership changes. "As I said on my first day, we need to do everything possible to thrive in a mobile-first, cloud-first world."