Microsoft, under the leadership of Satya Nadella, is preparing to lay off hundreds of employees within its Azure cloud unit. The layoffs will affect various teams, including Azure for Operators and Mission Engineering, according to a report by Business Insider.
Reports suggest that up to 1,500 jobs may be cut within the Azure for Operators team alone. These layoffs are part of broader organizational and workforce adjustments deemed necessary by Microsoft to effectively manage its business operations.
Affected Teams
The layoffs will primarily impact teams within the Azure for Operators and Mission Engineering divisions, which fall under the Strategic Missions and Technologies (SMT) organization formed in 2021. The SMT organization focuses on advanced projects such as quantum computing and space technologies.
Additionally, Microsoft’s mixed reality team, responsible for products like the HoloLens 2 augmented reality headset, is expected to face significant job cuts.
Statement of Microsoft
A Microsoft spokesperson commented on the layoffs, highlighting that organizational adjustments are a regular part of managing the business. The company reaffirmed its commitment to prioritize and invest in strategic growth areas to support customers and partners.
Despite the layoffs, Microsoft assured its dedication to ongoing projects, including the U.S. Department of Defense’s Integrated Visual Augmentation System (IVAS) program. The company intends to continue selling the HoloLens 2 and delivering cutting-edge technology to support military personnel.
Continued Trend of Layoffs
Microsoft’s layoffs align with a broader trend in the technology and media industries, where various 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, driven by strategic shifts toward artificial intelligence and economic challenges like high inflation in the United States.
