Microsoft, like other technology and media companies, is facing job cuts at its Azure cloud unit. According to a report by Business Insider, the company is implementing hundreds of layoffs across various sectors, with as many as 1,500 job cuts in the Azure for Operators sector alone. A Microsoft spokesperson told Reuters that organizational and workforce adjustments are a regular part of managing the business, with a focus on strategic growth areas and supporting customers and partners.
In addition to these cuts, Microsoft previously reduced its workforce by 1,900 jobs at Activision Blizzard and Xbox earlier in 2024. Other tech companies like Amazon.com and Salesforce also laid off several hundred employees over the year. The growth of Microsoft’s Azure cloud is attributed to heavy investments in AI and access to technologies from their partnership with ChatGPT maker OpenAI.
Business Insider reported that Azure for Operations and Mission Engineering are part of an organization named Strategic Missions and Technologies, formed in 2021 to focus on quantum computing and space technologies. Meanwhile, Microsoft is restructuring its mixed reality organization but plans to continue selling the HoloLens 2 augmented reality headset. An earlier report by Business Insider in 2022 revealed that Microsoft had scrapped plans for the HoloLens 3. Despite these changes, Microsoft remains committed to its strategic growth areas and supporting its customers and partners with innovative technologies.
