Microsoft CEO Steve Ballmer sent an e-mail to Microsoft's employees at 4:30 this afternoon explaining the reorganization of the Platforms and Services Division, and the departure of Kevin Johnson, a 16-year Microsoft employee who was president of that division.

Ballmer also laid out his priorities for the company in the 2009 fiscal year, which began July 1. The e-mail is after the jump.

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Kevin Johnson, president of Microsoft's huge Platforms and Services Division, is leaving the company, reportedly to head Juniper Networks. Microsoft is splitting the division into two groups, both of which will report to CEO Steve Ballmer.

The Wall Street Journal just posted a story citing unnamed sources who say Kevin Johnson, president of Microsoft's huge Platforms and Services Division, is leaving the company to run Juniper Networks. I've asked Microsoft representatives for confirmation, but have not heard back yet.

Update, 4:25 p.m.: Microsoft just confirmed Johnson's departure and announced a major reorganization of his division.

The Platforms and Services Division, which has more than 14,000 employees and is responsible for Windows, and the company's growing suite of online services -- including Internet search -- will be divided in to two groups, both reporting directly to CEO Steve Ballmer.

Update, 4:33 p.m.: The groups will be Windows/Windows Live and Online Services, according to a company statement.

"Effective immediately, senior vice presidents Steven Sinofsky, Jon DeVaan and Bill Veghte will report directly to Ballmer to lead Windows/Windows Live," the statement continued.

The company will search for a leader to fill a new position atop the Online Services group.

"In the Online Services Business, Microsoft will create a new senior lead position and will conduct a search that will span internal and external candidates. In the meantime, Senior Vice President Satya Nadella will continue to lead Microsoft's search, MSN and ad platform engineering efforts," the company said.

Johnson was one of three Microsoft division presidents. He took over the division in September 2005. Johnson led Microsoft's largest acquisition to date, Seattle-based aQuantive, and would have been in charge of incorporating Yahoo into his division.

According to his Microsoft biography, Johnson has been with the company since 1992, holding positions including group vice president of worldwide sales.

Update, 6:14 p.m.: Ballmer sent an e-mail to employees this afternoon laying out his priorities for the current year and explaining Johnson's departure and the reorganization. Read it here.

Driving to work could get significantly more expensive for Microsofties and others heading from Seattle to Redmond, or vice versa. A new state study released today lays out four options for tolling to raise some of the cost of replacing the Highway 520 floating bridge. Afternoon peak tolls could range from $2.95 to $3.25 starting 2010. Morning peak tolls would be $2.15 to $2.60.

Microsoft is co-producing a series of digital short films for distribution over the Xbox Live in another sign that online gaming networks are becoming more like all-in-one digital content distribution channels. Meanwhile, Sony is eyeing its own exclusive video offerings for distribution over the PlayStation Network, possibly in partnership with the company's formidable movie and television studios.

Updated, 4:03 p.m.: New comments from Microsoft after the jump.