Microsoft cuts hundreds of jobs at Azure Cloud as tech layoffs continue

Microsoft is reported cutting hundreds of jobs in its Azure cloud unit, Business Insider reported Monday, adding to a series of job cuts witnessed across the technology and media sectors this year.

According to sources familiar with the matter who spoke to Business Insider on the condition of anonymity, the layoffs impacted various teams within Microsoft, including Azure for Operators and Mission Engineering.

The scale of the Azure for Operators layoffs alone is estimated to have affected as many as 1,500 positions, a person familiar with the matter told Business Insider. Microsoft didn’t respond to the media’s requests for comment.

“One of the people estimated the Azure for Operators layoffs involved as many as 1,500 job cuts. These sources asked not to be identified discussing private matters.,” Business Insider reported.

The layoff news comes on the heels of another round of job cuts just four months ago when Microsoft shed 1,900 positions from its gaming division, coincidentally occurring just after the company reached a monumental $3 trillion valuation. Layoffs have increasingly become a recurring theme at Microsoft, following a strategic plan last year to reduce its workforce by 10,000 positions.

The affected teams, Azure for Operators and Mission Engineering, are integral parts of a broader organizational structure within Microsoft, established to spearhead ambitious projects known as Strategic Missions and Technologies. Led by former Azure head Jason Zander, this initiative includes other areas such as quantum computing and space exploration with the company’s government cloud operations.

However, these recent layoffs have surfaced amidst Microsoft’s thriving collaboration with OpenAI, propelling it to the forefront of generative artificial intelligence technology.

Although Microsoft typically undergoes minor workforce adjustments around this time of year in preparation for the new fiscal year starting after June 30, the frequency of layoffs at the company has escalated, mirroring trends observed across the broader tech landscape.

With the tech industry grappling with similar challenges, behemoths like Amazon and Google have also resorted to significant layoffs. According to data from the layoff tracking platform Layoffs.fyi, at least 306 tech companies have collectively let go of over 89,333 employees this year alone, highlighting a widespread pattern affecting not just Microsoft but the industry at large.