The Wall Street Journal’s All Things D is reporting that effective immediately, Windows unit President Steve Sinofsky is leaving the company. The move is considered to be "mutual" and deals in large part to Sinofsky not being a "team player", evidently rubbing some executives in other divisions the wrong way. It’s a shocking move because if anyone, Sinofsky has become the face of the new direction of Microsoft, having “saved” Windows 7 and pushing Redmond towards Windows 8 and beyond.
All Things D go on to say that “…Sinofsky deputies. Julie Larson-Green will head up the engineering side of Windows, while Tami Reller, who has had headed marketing and served as the unit’s CFO, will have responsibility for the business side of things.”
We have heard from numerous people (off-the-record) that many within Microsoft, due in part to his somewhat strong personality and uncompromising management style, did not like Sinofsky. Regardless, it’s quite shocking to hear of this move as Microsoft has had quite a few big names leave in the last few years.
Update: It's official. Microsoft just put out the press release.
Update 2: The Verge published the internal Microsoft letter from CEO Steve Ballmer to employees