Microsoft says Ballmer will retire within 12 months

"There is never a perfect time for this kind of transition, but now is the right time," Ballmer said in a statement.

"My original thoughts on timing would have had my retirement happen in the middle of our company's transformation to a devices and services operation. We need a a chief executive who will be here in longer-term to lead our new direction."

Ballmer took over as Microsoft's chief executive in 2000 when co-founder Bill Gates stepped down from day-to-day operations at the company. At the time, Microsoft was the undisputed technology leader and the world's largest company by market value.

But, in recent years, Microsoft has struggled as consumers moved from desktop and laptop PCs to mobile devices.

While its Windows software is used on the vast majority of personal computers, Microsoft has had little impact in the fast-growing segments of tablets and smartphones.

Ballmer, 57, will continue as the company's chief executive and will lead Microsoft through the next steps of its transformation to a devices and services company according to a statement released by the company.

The board of directors has appointed a special committee to search for a successor.

Microsoft is working with Heidrick & Struggles International Inc., an executive recruiting firm and will consider both external and internal candidates.

"As a member of the succession planning committee, I'll work closely with the other members of the board to identify a great new chief executive," said Gates.

Source: AFP via I-Net Bridge