Leaked Memo from Microsoft Executive Attributes Azure Layoffs to the ‘AI Wave’

Microsoft has recently cut hundreds of employees from its Azure cloud business in order to support investment in artificial intelligence. This decision was made by executive Jason Zander, who explained in an internal email that the company’s focus is on defining the AI wave and helping customers adopt this transformative technology.

Zander, who previously led Microsoft’s Azure cloud business, now heads up a team called Strategic Missions and Technologies (SMT). This team was originally created to work on cutting-edge initiatives like quantum computing and space technologies, but Microsoft’s current priority is investing in AI.

As part of the recent cuts, Microsoft eliminated around 1,500 positions from Zander’s teams. The company will also be discontinuing some services in preview, such as Azure Operator 5G Core and Azure Operator Call Protection, while moving the Azure Operator Nexus team to the Cloud + AI organization.

In his email, Zander acknowledged the difficulty of these decisions and assured that the company is dedicated to supporting affected employees through the transition with respect, dignity, and transparency. This move is part of Microsoft’s larger strategy to focus more on AI, as evidenced by recent reorganizations under Jared Spataro, who leads “AI at work” efforts. Teams like Copilot AI products have become a priority while some resources have been shifted away from projects like the Teams chat app.

Microsoft did not comment on the recent cuts, but anyone with insights to share is encouraged to contact Ashley Stewart via email (astewart@businessinsider.com) or a secure message on Signal (+1-425-344-8242).