Microsoft is downsizing its Azure cloud business by laying off hundreds of employees, according to sources familiar with the situation. The layoffs have affected teams such as Azure for Operators and Mission Engineering, with an estimated 1,500 job cuts being made in the Azure for Operators team.
The Azure for Operators and Mission Engineering teams are part of the Strategic Missions and Technologies (SMT) organization, established in 2021 to house Microsoft’s moonshots. Led by former Azure boss Jason Zander, SMT brings together innovative projects such as quantum computing and space, along with the government cloud business. However, Microsoft’s collaboration with OpenAI has now positioned it as a leader in generative AI.
It is common for Microsoft to make small workforce reductions around this time of year, as the company transitions to a new fiscal year after June 30. Layoffs have become more frequent at Microsoft and in the broader tech industry. The company previously announced a plan to cut 10,000 employees within the first few months of 2023 and has since conducted additional rounds of layoffs.
Microsoft did not respond to requests for comment on the matter. If you have insight or work at Microsoft and would like to share information, you can contact Ashley Stewart via the encrypted messaging app Signal at +1-425-344-8242 or email astewart@businessinsider.com. Make sure to use a non-work device for communication.
