Microsoft is said to have more layoffs as the tech giant and other companies in the tech sector focus on restructuring amid a changing landscape.
Microsoft will lay off hundreds, if not thousands, of employees in its Azure cloud division, citing people familiar with the situation. Business Insider.
Over 1,500 employees in the Azure for Operators organization were reportedly let go, with hundreds more also affected in the Mission Engineering sector.
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“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,” a Microsoft spokesperson said. Reuters in a statement about layoffs.
The company did not publicly confirm the total number of affected employees.
Microsoft has seen its Azure cloud business skyrocket, thanks to a partnership with OpenAI, which expanded in January as an ongoing collaboration that will span years with billions of dollars invested.
In January 2023, Microsoft fired one 10,000 workers are counted another round of the 1,900 employees were let go at the company's Activision Blizzard and Xbox divisions.
Microsoft revealed a 17% year-over-year increase in revenue in the company's fiscal third quarter 2024 earnings report, which came to $61.9 billion, and a 23% increase in operating income over the same period to $27.6 billion .
“Microsoft Copilot and the Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes in every role and industry,” said Satya Nadella, chairman and CEO of Microsoft, at the time.
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As of March 31, 2024, Microsoft there was an estimated 221,000 employees worldwide.
company it was upstairs 23% over a one-year period as of Tuesday afternoon.
Google also lays off Cloud employees
CNBC reported Monday that Alphabet has also laid off hundreds of employees in its cloud division, citing internal documents.
“As we've shared before, we continue to evolve our business to meet our customers' priorities and the significant opportunity ahead,” a Google spokesperson said. CNBC. “We remain committed to investing in areas that are critical to our business and ensure our long-term success.”
Some of the employees who were let go including recent hires and at least one employee who had not yet completed their onboarding process.
This follows a round of unspecified layoffs in April, where the tech giant reportedly cut jobs in its real estate and finance sectors as part of a cost-cutting drive.
“During the second half of 2023 and into 2024, a number of our teams made changes to become more efficient and work better, remove layers and align their resources with priorities their largest product,” said a Google spokesperson. Reutersin that time.