The Chief Executive Officer of Microsoft, Satya Nadella has informed employees via email that Kathleen Hogan will be transitioning from the role of chief people officer to that of executive vice president of the “Office of Strategy and Transformation.”

Amy Coleman, who has been employed by Microsoft as an HR executive for an extended period, will succeed Hogan.

Nadella stated in the email, “As we have observed repeatedly over the course of our 50-year history, periods of significant change for our industry and the world necessitate that we adopt a mindset that allows us to perpetually adapt and transform ourselves.”

“There is no doubt that we are at the forefront of another such moment, given the rapid changes that are occurring in every industry and business function in this AI era.”

According to multiple sources with knowledge of the plans, Microsoft terminated nearly 2,000 employees who were designated low-performers in January and February as part of its ongoing evaluation of its performance review and management process.

As reported by BI, the move also coincides with a general trend in the technology sector toward increased rigor and less employee coddling.

“Our industry necessitate that we adopt a perspective that allows us to perpetually adapt and transform ourselves,” Nadella stated in the email.

“There is no doubt that we are at the forefront of another such moment, given the rapid changes that are occurring in every industry and business function in this AI era.”

The appointment of Hogan as Microsoft’s chief people officer was one of Nadella’s initial significant leadership initiatives following his appointment in 2014.

Hogan has been in the position since then, assisting Nadella in the development of a new workplace management system centered on the concept of a “growth mindset.”

This mindset posits that employees acquire skills through diligent work and that challenges and failings are opportunities to learn. This is in opposition to a “fixed mindset,” which presupposes that talent is inherent and that challenges are indicative of failure.

“Kathleen and I have been discussing this transition and succession planning for some time, and we both agree that this is the critical juncture to apply new focus and intention to this work,” Nadella wrote in an email to employees announcing the change.

The redesign of Microsoft’s performance review process is anticipated to be significantly influenced by Coleman, the prospective chief people officer.