Microsoft
- Charles Lamanna, head of Copilot, Agents, and Platform, just took over Office and Teams.
- Teams within his new combined unit have adopted flatter structures amid the rise of AI agents.
- He's also enforced a stricter RTO for senior staff, and offered employees relocation to major hubs.
Microsoft's head of the Copilot platform, AI agents, and now Office is making good on his promise to reshape how his teams work.
"The most important thing my team will do this year won't be any single product or feature we ship: instead, it will be changing how we work," Charles Lamanna, the new boss of this key Microsoft unit, wrote in August.
Lamanna has started requiring senior staff to work in offices four days a week, and he's offering relocation to major hubs, according to people familiar with the changes. Teams within his organization have also reorganized to a flatter structure removing middle managers in line with Lamanna's views about how agentic AI is changing engineering.
"We're rethinking where managerial layers are critical and where flatter structures can enable faster decision-making, clearer ownership and greater autonomy," a Microsoft spokesperson said.
The moves offer an early look at how Microsoft is reworking its software empire for the AI age. Lamanna, who already oversees the company's Copilot and AI agent platforms, now controls the Office productivity software and Teams workplace chat service that are used by millions of workers.
Lamanna took over those groups earlier in October when the previous boss, Ryan Roslansky, announced plans to leave at the end of the year. Roslansky was seen as a successor to Microsoft veteran Rajesh Jha, who retired in July. Roslansky and Lamanna were two of the three executives who made up the new Copilot leadership team.
The changes come as CEO Satya Nadella reshapes the company around AI. Microsoft has been consolidating responsibility for its AI products, and a wave of senior executive departures has made way for a new generation of leaders.
"Span of control"
Lamanna's expanding responsibilities make him a key player in this leadership transition, giving him oversight of Microsoft's flagship workplace software and the AI tools that could change how customers use its products.
Recently, the Teams unit now under Lamanna reorganized by increasing the "span of control" for managers in engineering, according to two of the people familiar with the changes.
This refers to the number of employees who report to each manager, and it's become common for tech companies to flatten engineering organizations like this in the AI era, as coding tools and agents write more software.
The reorganization included converting managers to individual contributors, the people said. The idea is that agentic coding capabilities mean Microsoft needs fewer managers, according to one of the people. The team will now have a ratio of one manager per 12 individual contributors.
"Agentic coding capabilities have changed every level of the engineering function," Microsoft's spokesperson said. "Software engineers are no longer hand-assembling every line of code. Instead, they are now designing and directing the 'agentic coding machine' that helps build the product."
As AI makes it easier to build software, skills like making sound technical decisions, designing systems, ensuring quality and security, and understanding customer needs become more valuable.
"At the same time, some tasks that traditionally required managerial coordination, such as managing handoffs and orchestrating work across teams, become less central," the spokesperson said.
Other teams have implemented similar restructuring, the spokesperson confirmed.
RTO and relocation
Lamanna has also started reshaping where employees work. Last week, Lamanna's Copilot, Agents, and Platform (CAP) organization offered select US employees the option to relocate to offices at Microsoft's Redmond, Washington headquarters, San Francisco, or New York, according to three people familiar with the plans.
The people who spoke with Business Insider for this story asked not to be identified discussing internal matters.
Lamanna has also asked employees at the "partner" level and above — some of Microsoft's most senior staff — to start working in physical offices at least four days a week. The companywide standard is three days a week.
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