Microsoft is reportedly cutting staff in its Azure cloud computing division, following a trend of layoffs in the tech and media industries this year. The reductions will affect teams like Azure for Operators and Mission Engineering, with some insiders estimating up to 1,500 job cuts in Azure for Operators alone.
A Microsoft spokesperson stated that these organizational changes are necessary for effective business management and that the company will continue to prioritize strategic growth areas to support customers and partners. These layoffs come after January’s cuts of 1,900 positions at Activision Blizzard and Xbox, as well as significant job reductions at tech giants like Amazon and Salesforce in 2024.
Despite the layoffs, Microsoft’s Azure cloud platform is experiencing strong growth due to investments in AI and a partnership with OpenAI. Azure for Operations and Mission Engineering are part of Strategic Missions and Technologies, which was established in 2021 for quantum computing and space initiatives.
In addition to the Azure cuts, Microsoft is restructuring its mixed reality organization but will continue selling the HoloLens 2 augmented reality headset. Microsoft executive Jason Zander emphasized the company’s focus on defining the AI wave and empowering customers with technology aligned with Microsoft’s long-term vision and strategy.
As part of the restructure, Microsoft will discontinue services like Azure Operator 5G Core and Azure Operator Call Protection, while integrating the Azure Operator Nexus team into the Cloud + AI organization’s product lines. Zander assured that the company is dedicated to supporting impacted employees through the transition with respect, dignity, and transparency.
The job cuts at Microsoft mirror similar strategic adjustments at Google’s cloud division, which has also been trimming its workforce to optimize cloud computing and AI operations. Both companies are adapting to evolving market conditions to remain competitive and profitable.
For more insights on AI and big data from industry leaders, attendees can explore the AI & Big Data Expo events in Amsterdam, California, and London. These events are co-located with Cyber Security & Cloud Expo and Digital Transformation Week, offering a comprehensive look at the latest trends in enterprise technology.
Spot on as usual. I shared this on my LinkedIn and my followers liked it!
Keep up the great work. 🙂