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Microsoft will cut jobs at the Azure Cloud Division in a strategic realignment

Microsoft is laying off hundreds of employees at its Azure cloud unit and mixed reality business, sources said.

Layoffs are reportedly affecting groups like Azure for Operators and Mission Engineering, with an estimated 1,500 employees in that department alone.

This followed a trend of technology companies looking to cut costs, with Microsoft itself laying off 10,000 employees by 2023.

The affected Azure teams were part of Microsoft’s Strategic Missions and Technologies (SMT) that worked on the company’s “moonshot” projects such as quantum computing and space systems.

The layoffs came despite Microsoft’s recent progress in its partnership with OpenAI and the fact that it has been the world’s most valuable company since January this year.

These cuts follow Microsoft’s typical workforce consolidation exercise around the end of their fiscal year in June. However, the current round comes on top of the biggest layoffs in 2023 and reflects a broader trend in the tech industry.

Microsoft has yet to announce the layoffs officially, but a separate report said the mixed reality division that works on the HoloLens 2 project has also been affected.

This announcement follows CEO Satya Nadella's previously announced changes in the company's hardware division, including the closure of the Activision Blizzard acquisition and the recent push for “AIPC” with new Surface devices, for example, no Business Insider report.

Conclusion: Microsoft's decision to cut services at the Azure Cloud division reflects a difficult but important step in its continued growth. As the tech landscape continues to change, companies need to adapt to stay competitive.