Microsoft has recently announced that it will be cutting hundreds of employees from its Azure cloud business in order to invest more heavily in artificial intelligence. According to an internal email from executive Jason Zander, the company is shifting its focus to AI and is committed to helping customers successfully adopt this technology in the long term.
The layoffs affected as many as 1,500 employees on Zander’s teams, including the discontinuation of services like Azure Operator 5G Core (AO5GC) and Azure Operator Call Protection. Additionally, the Azure Operator Nexus team will be moving to the Azure Edge and Platform product line within the Cloud + AI organization.
Zander expressed his regret at having to make these decisions, especially when they impacted colleagues and friends. He emphasized Microsoft’s dedication to supporting those affected with respect, dignity, and transparency throughout the transition.
This is not the first time Microsoft has made cuts in order to focus more on AI. In recent years, the company reorganized teams under Jared Spataro, head of “AI at work,” to prioritize Copilot AI products over other initiatives. Microsoft did not respond to requests for comment following the layoffs.
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