Bates, the former Skype CEO and in-charge of Microsoft's business development, will leave immediately, technology news site Re/code reported on Sunday citing unnamed sources.

Bates, who has also worked at Cisco Systems Inc, was considered one of the potential CEO candidates to succeed Steve Ballmer, who announced his retirement in August last year.

Eric Rudder, head of advanced strategy, will temporarily take up Bates' duties and marketing executive Chris Capossela will replace Reller, the report said.

Reller, one of the top female executives at the company and co-head of Microsoft's Windows unit, will remain with Microsoft for some time to help with the transition.

The report said Nadella, who was appointed the CEO on February 4, told staff of the changes on Friday. The company plans to announce them publicly on Tuesday.

Microsoft declined to comment on the report.


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