To: Thomas A Watson who wrote (9791 ) 4/3/2002 11:09:41 PM From: Don Green Read Replies (2) | Respond to of 14451 Microsoft President Belluzzo Resigns By ALLISON LINN AP Business Writer April 3, 2002, 9:00 PM EST SEATTLE -- Microsoft Corp. president and chief operating officer Rick Belluzzo unexpectedly resigned Wednesday after just over a year in the job, and Microsoft said it would eliminate his position. The software giant also announced a restructuring plan it said would give its main business units more autonomy. Analysts speculated that Belluzzo may have resigned because the restructuring made his job unnecessary. It transferred many of his responsibilities to the company's seven major business units. Belluzzo, a longtime computer and software industry executive, said he planned to start his own company. He joined Microsoft in September 1999 and held several senior positions before being promoted to his current position in February 2001. Microsoft said in a statement Wednesday that Belluzzo would remain in his position until May, and would stay at the company until September to organize the transition. Rob Enderle, an analyst with Giga Information Group, said many had assumed Belluzzo was being groomed to replace Chief Executive Steve Ballmer. "You don't normally put someone in that role in order to take him out of there a few days later or a few months later," Enderle said. In his prior positions, Belluzzo worked on the company's consumer operations, including its Xbox game system, its MSN Messenger instant messaging system and its Ultimate TV service. Belluzzo also was instrumental early on in the company's .NET initiative for delivering services over the Internet. Before joining Microsoft, he was briefly chief executive of Silicon Graphics Inc., and previously spent 23 years at Hewlett-Packard Co. Belluzzo replaced Bob Herbold, a longtime Microsoft executive who continues to work part-time for Microsoft in its dealings with industry and political leaders. In trading Wednesday on the Nasdaq Stock Market, shares of Microsoft closed at $56.33, down 97 cents, but were up 17 cents in after-hours trading. Copyright © 2002, The Associated Press