Microsoft Slashes 1,000+ Jobs in Cloud Computing Division

Microsoft has reportedly laid off more than a thousand employees from its Azure cloud business, with the cuts impacting teams such as Azure for Operators and Mission Engineering, according to people familiar with the situation.

Business Insider reports that the tech giant’s decision to trim its workforce comes as a surprise to many, given the company’s recent success in the generative artificial intelligence (AI) space through its partnership with OpenAI. However, the layoffs are part of a broader trend within Microsoft and the tech industry as a whole, as companies adjust to changing market conditions and prioritize certain business areas over others.

Microsoft CEO Satya Nadella (Jason Redmond/ Getty)

One of the affected teams, Azure for Operators, is estimated to have lost as many as 1,500 employees in this round of layoffs, according to one of the sources who asked to remain anonymous due to the sensitive nature of the matter. The Azure for Operators and Mission Engineering teams are part of Microsoft’s Strategic Missions and Technologies organization, which was established in 2021 under the leadership of former Azure boss Jason Zander. This division focuses on cutting-edge initiatives such as quantum computing and space, as well as the company’s government cloud business.

The recent layoffs come as a continuation of Microsoft’s plans to reduce its workforce by 10,000 employees which was announced last year. Since 2023, the company has conducted additional rounds of layoffs, signaling a shift in priorities and resource allocation.

While Microsoft typically makes small workforce cuts around this time of year as it transitions to a new fiscal year after June 30, the scale of the recent layoffs in the Azure cloud business has raised concerns among employees and industry observers. The company’s decision to reduce its workforce in this area may indicate a change in strategy or a response to market pressures.

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