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Microsoft Reduces Azure Cloud Workforce Amid Strategic Shift

Quiver Editor

Microsoft (MSFT) is cutting hundreds of employees from its Azure cloud business, according to people familiar with the situation. The layoffs impacted teams including Azure for Operators and Mission Engineering, the people said. 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.

The Azure for Operators and Mission Engineering teams are part of an organization created to house Microsoft moonshots. This broader organization, called Strategic Missions and Technologies (SMT), was created in 2021 and is led by former Azure boss Jason Zander. It brings together cutting-edge initiatives such as quantum computing and space alongside its government cloud business.

Market Overview:
  • Microsoft is cutting hundreds of jobs from the Azure business.
  • The layoffs impact Azure for Operators and Mission Engineering teams.
  • The Azure for Operators layoffs involved as many as 1,500 job cuts.
Key Points:
  • The Azure for Operators and Mission Engineering teams are part of the Strategic Missions and Technologies (SMT) organization.
  • SMT houses initiatives such as quantum computing and space alongside Microsoft's government cloud business.
  • Microsoft's partnership with OpenAI has positioned it as a leader in generative AI.
Looking Ahead:
  • Microsoft typically makes small workforce cuts around this time of year as it transitions to a new fiscal year after June 30.
  • Layoffs have become more common at Microsoft and in the tech industry more broadly.
  • The company announced plans to cut 10,000 employees within the first few months of 2023 and has conducted additional rounds of layoffs since then.

Microsoft typically makes small workforce cuts around this time of year as it transitions to a new fiscal year after June

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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