Microsoft reorganizes, forms two major divisions

U.S.-based tech giant Microsoft announced a major reorganization Thursday, forming two main teams that will better address innovation and customers.

The company is establishing an Experiences and Devices team, and a Cloud and AI team, CEO Satya Nadella said in a statement.

The Experiences and Device team will focus on end users, their use of the Windows operating system, the Office program and third-party applications. It will be headed by Rajesh Jha, the current executive vice president of Microsoft's Office Product Group.

The Cloud and AI team will focus on cloud and artificial intelligence infrastructure, services and knowledge. It will be led by Scott Guthrie, the current executive vice president for the Cloud and Enterprise Group.

Terry Myerson -- executive vice president for the Windows and Devices group who joined Microsoft 21 years ago -- is leaving the firm, according to the statement.

Microsoft shares reacted positively to the news, rising as high as $90.58 at 1100 EST (1500 GMT) or 1.3 percent.

The company's market cap rose to $697 billion to rank second in the world behind Apple.