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Microsoft's New CEO Satya Nadella Is Known Internally As The Guy Who Cuts Middle Management

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Satya Nadella
Microsoft CEO Satya Nadella  Microsoft

The Microsoft rank and file are cheering the appointment of Satya Nadella as the new CEO, not because he's safe, but because he isn't, one former Microsoft employee who worked for Nadella told Business Insider.

This employee, Rakesh Malhotra, left Microsoft two years ago to join cloud startup Apprenda as a vice president. But he worked for Nadella since 2011, when Ballmer put Nadella in charge of the Server and Tools division, replacing longtime executive Bob Muglia.

Nadella, who has been with Microsoft for 22 years, is seen as a safe choice as Microsoft's new CEO, someone who knows the company and won't drastically change course.

But inside Microsoft, he's known as the guy who gets rid of Microsoft's over-the-top sales-y culture, ushered in when boisterous sales guy Steve Ballmer took over from Bill Gates as CEO.

Nadella is also known as the guy who gets rid of middle management.

Malhortra first met Nadella when he became his boss in the Server and Tools group. Malhortra was an engineer, and Nadella held an informal meeting to ask lead engineers about their products.

That meeting was crazy wild for Microsoft because it wasn't crazy wild. Meeting a new executive usually involved a lot of pomp and circumstance, Malhotra said, including PowerPoint presentations, demonstrations and rehearsals for the meeting.

Nadella "literally gave you a day’s warning. No theater. That may seem normal to people outside of Microsoft, but I can tell you that at Microsoft, and I was there for 10 years, that never happened before Nadella. Never once," Malhortra said.

If big changes are needed at Microsoft, Nadella won't be afraid to make them, either, Malhortra says.

"People say he's safe but I don’t think he’s a safe choice. He changed how the Server and Tools division worked. He got rid of three layers of management," Malhortra said.

"Microsoft at its core is an engineering company and he’s an engineer. By and large the rank-and-file say, 'He’s one of us.' People at Microsoft are happy," he added.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.