Microsoft is making significant workforce adjustments in its Azure cloud unit, with hundreds of layoffs expected to impact teams like Azure for Operators and Mission Engineering. This move follows a trend of tech and media industry layoffs seen earlier this year.
The reported layoffs at the Azure cloud unit come as part of the company’s regular business management efforts. While the exact number of job cuts is not confirmed, sources suggest that teams like Azure for Operators could see up to 1,500 job reductions.
In addition to these layoffs, Microsoft previously cut 1,900 jobs at Activision Blizzard and Xbox in January. This year has also seen layoffs at other tech giants like Amazon.com and Salesforce, signaling a broader trend in the industry.
Microsoft’s Azure cloud platform has been experiencing significant growth, thanks to the company’s focus on AI and strategic partnerships like the one with ChatGPT maker OpenAI. The impacted teams, including Azure for Operations and Mission Engineering, are part of the Strategic Missions and Technologies organization, which focuses on areas like quantum computing and space.
Apart from these layoffs, Microsoft is also undergoing restructuring in its mixed reality division. However, the company plans to continue offering its augmented reality headset, the HoloLens 2, despite previous reports suggesting the cancellation of HoloLens 3 plans. This move reflects Microsoft’s commitment to evolving technology and adapting to market dynamics.
Overall, Microsoft’s workforce adjustments underscore the company’s efforts to streamline operations, prioritize strategic growth areas, and stay competitive in the rapidly evolving tech landscape. This shift aligns with broader industry trends and highlights the importance of agile business strategies in today’s digital economy.