Microsoft lays off about 1,000 employees for Azure, HoloLens, etc.

It has been reported that Microsoft will cut around 1,000 jobs in the division that develops its cloud computing service Microsoft Azure and the mixed reality (MR) headset HoloLens 2 .

Microsoft to lay off hundreds at Azure cloud unit, Business Insider reports | Reuters
https://www.reuters.com/technology/microsoft-lay-off-hundreds-azure-cloud-unit-business-insider-reports-2024-06-03/

Microsoft cuts jobs in Azure, HoloLens, and other units in latest move to control costs – GeekWire
https://www.geekwire.com/2024/microsoft-cuts-jobs-in-azure-hololens-and-other-units-in-latest-move-to-control-costs/

Microsoft Layoffs Hit Azure, Mixed Reality Employees: Reports
https://www.crn.com/news/cloud/2024/microsoft-layoffs-hit-azure-mixed-reality-employees-reports

Google cuts at least 100 jobs across cloud units, sources say
https://www.cnbc.com/2024/06/03/google-cuts-at-least-100-jobs-across-cloud-unit-sources-say.html

According to Business Insider , Microsoft's cuts will affect teams such as Azure for Operators and Mission Engineering. Azure for Operators and Mission Engineering are part of Strategic Missions and Technologies, an organization responsible for quantum computing and space. Business Insider reported that the cuts were in the hundreds, but technology media GeekWire reported that 'sources have revealed that the total number of employees affected by the cuts is close to 1,000.'

A Microsoft spokesperson told Reuters, 'Organizational and workforce adjustments are a necessary and regular part of running our business. We will continue to prioritize and invest in strategic growth areas for our customers and partners for the future,' emphasizing that the job cuts are necessary for organizational operations.

Microsoft also cut 1,900 jobs at its subsidiaries Activision Blizzard and Xbox in January 2024. Prior to that, Microsoft cut 10,000 jobs in January 2023.

Microsoft lays off 1,900 Activision Blizzard and Xbox employees - GIGAZINE

Microsoft's cloud computing service, Azure, has been growing rapidly through the company'sheavy investment in AI and its long-term partnership with OpenAI . As for why Microsoft is cutting staff despite its strong performance, GeekWire pointed out that 'the cuts are being made to maintain profit margins as Microsoft continues to make AI-related capital investments.'

In addition, Microsoft told GeekWire, 'Today, we announced restructuring within Microsoft's Mixed Reality division. We remain fully committed to the Department of Defense's IVAS program and will continue to provide cutting-edge technology to support our warfighters. Additionally, we will continue to invest in Windows 365 to reach the broader mixed reality hardware ecosystem. In addition, we will continue to sell HoloLens 2 and support our existing HoloLens 2 customers and partners,' acknowledging that cuts have been made in the mixed reality division.

According to figures tracked by GeekWire based on regulatory filings and Microsoft earnings calls, the company will have about 227,000 employees worldwide at the end of 2023, up from about 232,000 at the end of 2022. Microsoft CFO Amy Hood told analysts that as of the end of March 2024, the company's workforce was down about 1% year over year.