Microsoft's Loss, Amazon's Gain: Why Windows Boss Panos Panay Jumping Ship Is Not Really Surprising

Microsoft Corporation’s MSFT chief product officer, Panos Panay, has left the company to reportedly join Amazon Inc. AMZN, prompting questions about the circumstances surrounding his departure.

What Happened: As the head of Microsoft’s Windows and Devices division and a key player in creating the Surface line of laptops and tablets, Panay’s exit was a surprise.

However, Panay’s departure was not as abrupt as it may have seemed. 

Recent changes within the Windows and Devices division, budget cuts, and product cancellations had left Panay disheartened, reported Business Insider, citing insider sources. 

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While Panay was known for his demanding leadership style and high standards, he was also well-liked at Microsoft, with a team that remained loyal to him for over a decade.

It is pertinent to note that Microsoft had scaled back its division, making significant cuts to the Surface business, including canceling the next generation of Surface headphones. 

This shift was part of a broader company-wide strategy to focus on Microsoft’s core strengths and artificial intelligence ambitions.

In July, it was reported that an internal poll at Microsoft revealed a significant drop in employee morale and confidence in leadership. 

Why Amazon: Panay’s reported decision to join Amazon might not be entirely surprising, given his passion for consumer products. 

While Surface achieved success in Microsoft’s consumer hardware lineup, it faced tough competition in the diverse PC market, the report noted.  

In contrast, Amazon boasts a range of popular consumer devices, including Kindle reading tablets, smart home products powered by Alexa, and smart cameras like Blink.

Having said that, Amazon’s devices unit has faced its own challenges, including recent cuts that affected its development pipeline. 

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next: Amazon’s AWS Vs Microsoft Azure Vs Google Cloud: How Tech Titans Fared In June Quarter’s Cloud Showdown

Photo via Wikimedia Commons

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