Microsoft is reportedly cutting hundreds of jobs at its Azure cloud unit, as reported by Business Insider on Monday. This adds to a series of layoffs that have been observed in the technology and media industries this year. According to the report, the teams affected by the layoffs include Azure for Operators and Mission Engineering. The Azure for Operators layoffs might result in up to 1,500 job cuts, sources familiar with the situation revealed.
A Microsoft spokesperson informed Reuters that “organizational and workforce adjustments are a necessary and regular part of managing our business.” The company will continue to prioritize and invest in strategic growth areas to support its customers and partners. These job cuts follow the 1,900 job reductions at Activision Blizzard and Xbox in January. In 2024, tech giants like Amazon.com and Salesforce also laid off several hundred employees.
Microsoft’s Azure cloud has been experiencing rapid growth due to heavy investments in AI and the acquisition of prized technologies from ChatGPT maker OpenAI through their partnership. Business Insider reported that Azure for Operations and Mission Engineering are both part of an organization called Strategic Missions and Technologies, formed in 2021 with a focus on quantum computing and space exploration.
Meanwhile, Microsoft has initiated a restructuring of its mixed reality organization but will continue to sell its augmented reality headset, the HoloLens 2. In 2022, Business Insider reported that the company had abandoned plans for HoloLens 3. Microsoft remains committed to navigating these changes within its various divisions to ensure continued growth and innovation.