Satya Nadella-led Microsoft to lay off hundreds of employees at Azure Cloud unit

Microsoft is planning to cut hundreds of jobs within its Azure cloud unit. Business Insider reported that the layoffs will impact several teams, including Azure for Operators and Mission Engineering.

According to the report, as many as 1,500 jobs might be cut within the Azure for Operators team alone.

These layoffs are part of broader organizational and workforce adjustments that Microsoft claims are necessary to manage its business effectively.

The company also emphasized its commitment to continuing investments in strategic growth areas to support its customers and partners.

Which teams are affected?

The layoffs will impact teams within the Azure for Operators and Mission Engineering divisions. These divisions fall under the Strategic Missions and Technologies (SMT) organization, which was formed in 2021.

SMT focuses on advanced projects such as quantum computing and space technologies.

Additionally, there are reports that Microsoft’s mixed reality team, which works on products like the HoloLens 2 augmented reality headset, will also face significant job cuts.

What Is Microsoft's Official Statement?

A Microsoft spokesperson commented on the layoffs, stating, “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.” Despite the layoffs, Microsoft assured its commitment to ongoing projects, including the U.S. Department of Defense’s Integrated Visual Augmentation System (IVAS) program. The company plans to continue selling the HoloLens 2 and delivering cutting-edge technology to support military personnel.

Ongoing layoffs trend

Microsoft's layoffs are part of a broader trend in the technology and media industries, where numerous companies have announced job cuts in 2024.

Earlier this year, Microsoft laid off 1,900 employees from its Activision Blizzard and Xbox units.

Other major tech firms, including Amazon.com and Salesforce, have also conducted significant layoffs. These moves are largely driven by companies' strategic shifts toward artificial intelligence and the need to address economic challenges such as high inflation in the United States.