(Reuters) – Microsoft is cutting hundreds of jobs at its Azure cloud unit, Business Insider reported on Monday, adding to layoffs seen in the technology and media industries this year.

According to the report, the vacation will affect teams including Azure for Operators and Mission Engineering. The layoffs at Azure for Operators include 1,500 job cuts, he added, citing people familiar with the situation.

“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 to support our customers and partners,” Micro said. A Soft spokeswoman told Reuters.

The cuts come after the company shed 1,900 jobs at Activision Blizzard and Xbox in January of this year. Tech firms including Amazon.com and Salesforce also laid off several hundred employees in 2024.

Microsoft’s Azure cloud is growing rapidly due to the company’s heavy investment in AI and access to coveted technologies through a strategic partnership with ChatGPT maker OpenAI.

Business Insider reported that Azure for Operations and Mission Engineering is part of an organization called Strategic Missions and Technologies created in 2021, tasked with quantum computing and space.

Separately, Microsoft has begun restructuring its mixed reality organization but will continue to sell its augmented reality headset, the HoloLens 2, a company spokesman told Reuters on Monday.

Business Insider reported in 2022 that the company scrapped plans for HoloLens 3.

(Reporting by Zaheer Kachwala in Bangalore; Editing by Anil D’Silva and Maju Samuel)

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