Microsoft is reportedly laying off "hundreds" of employees from its Azure cloud division. The tech giant is the latest company to announce job cuts and follow the trail of downsizing across corporates.
According to sources cited in a report by Business Insider, the job cuts will be affecting teams such as Azure for Operators and Mission Engineering. It is also estimated that the layoff figure might reach thousands.
The Azure for Operators and Mission Engineering teams are part of a larger organization called Strategic Missions and Technologies (SMT). It was formed in 2021 to house Microsoft's "moonshots" project. SMT largely focuses on advanced technology like quantum computing, space ventures, and government cloud services. It is led by former Azure head Jason Zander
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However, since the advent of Gen AI in the digital space, tech giants have increasingly started to shift their focus and pour in heavy investments in the new technology.
For instance, Microsoft's partnership with OpenAI has significantly boosted its standing in the AI space.
In a separate report by The Verge, Microsoft spokesperson Craig Cincotta stated, “Earlier today, we announced a restructuring of Microsoft’s Mixed Reality organization. We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting-edge technology to support our soldiers."
"In addition, we will continue to invest in W365 to reach the broader Mixed Reality hardware ecosystem. We will continue to sell HoloLens 2 while supporting existing HoloLens 2 customers and partners,” he added.
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The tech giant usually trims its workforce around this time as it prepares for the new fiscal year. However, layoffs have become quite frequent at Microsoft and across the larger tech industry.
Even last year, the company had announced its plans to reduce its workforce by around 10,000 employees.
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