In a significant step reflecting the present trend of downsizing in the IT sector, Microsoft and Google have announced significant layoffs inside their cloud operations. These layoffs are part of a bigger effort to consolidate operations and focus on vital growth areas amid ongoing economic uncertainty. According to Business Insider, Microsoft intends to terminate hundreds of employees from its Azure cloud division. The reduction will have a significant impact on the Azure for Operators and Mission Engineering teams, with up to 1,500 job losses. These groups are part of the Strategic Missions and Technologies organization, which was established in 2021 to oversee quantum computing and space exploration initiatives.
According to a Microsoft representative, “organizational and personnel adjustments are a necessary and regular element of managing our business. We will continue to prioritize and invest in important development areas for the benefit of our customers and partners.” According to Business Insider, Microsoft intends to terminate hundreds of employees from its Azure cloud division. The reduction will have a significant impact on the Azure for Operators and Mission Engineering teams, with up to 1,500 job losses. These groups are part of the Strategic Missions and Technologies organization, which was established in 2021 to oversee quantum computing and space exploration initiatives. According to a Microsoft representative, “organizational and personnel changes are an essential and regular part of running our business. We will continue to concentrate and invest in key development areas to benefit our consumers and partners.”
This round of layoffs follows previous ones in January, when Microsoft laid off 1,900 employees
This round of layoffs follows previous ones in January, when Microsoft laid off 1,900 employees from its Activision Blizzard and Xbox divisions. To drive growth in its Azure cloud services, the company has invested heavily in artificial intelligence and used its strategic collaboration with OpenAI, the creator of ChatGPT. Similarly, Alphabet Inc.-owned Google is laying off at least 100 people across many departments in its cloud division. According to CNBC, employment in sales, operations and engineering, consulting, and “go to market” strategy are among those affected. This decision is part of Google’s continuous efforts better to align business operations with consumer requirements and future opportunities.
A Google spokesperson states, “We are constantly evolving our business to meet our customers’ priorities and the significant opportunities that lie ahead. We remain committed to investing in areas vital to our business to ensure long-term success.” This statement follows previous layoffs at Google, which included an unspecified number of job cuts across many teams in April and several hundred positions in January. The layoffs at Microsoft and Google are part of a bigger trend of employment reductions in the technology and media industries in 2024. Companies like Amazon and Salesforce have reduced their workforces in recent months as a result of poor economic conditions. Both Microsoft and Google have declared that they want to invest in crucial areas critical to their long-term success. Despite reorganizing its mixed reality division, Microsoft will continue to sell its HoloLens 2 augmented reality headset, while Google remains focused on critical business sectors to ensure long-term success.
