Microsoft has launched a major restructuring of its global Human Resources function as the company accelerates its transformation into an AI-first organization.

In an internal memo sent to employees this week, Chief People Officer Amy Coleman announced a comprehensive overhaul of the HR organization responsible for compensation, workplace policies, and employee programs supporting Microsoft’s workforce of more than 220,000 people worldwide.

“We are in a time when technology, the way we work, and our organizational structures are all evolving,” Coleman wrote.

“The pace of change is exceeding what our current operating model and decision rhythms were built for. We are no longer being asked to scale for stability; we need to scale for adaptability and help set a new pace.”

The restructuring includes several key leadership changes.

Chief Diversity Officer Lindsay-Rae McIntyre will depart Microsoft on March 31 to assume the role of Chief People Officer at another organization.

She will be succeeded by Leslie Lawson Sims, who has been named Vice President of People & Culture and will focus on accelerating the people team and shaping enterprise-wide culture.

Additional changes include the consolidation of engineering HR functions under a single leader, the expansion of the Employee Experience function, and closer integration of People Analytics to support data-driven decisions.

Microsoft is also in the final stages of appointing a new head of talent acquisition who will report directly to Coleman.

Coleman emphasized that the HR function must evolve at the same speed as the business, urging teams to “keep learning, let go of old assumptions, and make Microsoft a place where everyone can do their best work.”

A Microsoft spokesperson confirmed the authenticity of the memo and stated that the changes are designed to make the people organization more responsive and agile in an AI-first world.

The new structure is expected to roll out over the coming months.