Microsoft is reportedly reducing staff in its Azure cloud computing division as part of a larger trend of layoffs hitting the tech and media industries this year. Up to 1,500 layoffs are expected at Azure, including teams like Azure for Operators and Mission Engineering. These cuts are seen as necessary for effective business management, with a Microsoft spokesperson stating that the company will prioritize areas of strategic growth to support customers and partners.
The restructuring at Microsoft follows previous layoffs in January at Activision Blizzard and Xbox. Other tech giants such as Amazon and Salesforce have also made significant job cuts in 2024. Despite the layoffs, Microsoft’s Azure cloud platform is experiencing strong growth due to the company’s AI investments and partnership with OpenAI.
Microsoft is also restructuring its mixed reality organization while continuing to offer the HoloLens 2 augmented reality headset. The company’s focus on AI technology is evidenced by the development of Copilot AI products and reducing staff on Teams chat apps. Microsoft Executive Jason Zander emphasized the company’s long-term vision and strategy in making these decisions.
In a similar move, Google owner Alphabet is cutting its workforce at the Google Cloud division. Recent layoffs have affected positions in sales, consulting, strategy, operations, and engineering. These cuts are part of a broader effort to optimize operations and drive faster growth in the increasingly competitive AI landscape.
Despite the challenges, both Microsoft and Google Cloud have seen revenue growth driven by their AI technologies. Google Cloud’s revenue reached $9.57 billion last quarter, surpassing analyst predictions, while Microsoft’s Azure platform continues to expand. Both companies are making strategic adjustments to stay competitive and profitable in the rapidly changing market.
The job cuts at Microsoft and Google reflect the ongoing efforts to adapt to market conditions and streamline operations in the cloud computing and AI sectors. Industry professionals interested in learning more about AI and big data can attend the Verify AI and Big Data Exhibition in Amsterdam, California, and London, alongside other technology events and webinars powered by TechForge.
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https://www.cloudcomputing-news.net/news/2024/jun/07/google-and-microsoft-restructures-cut-jobs-cloud-ai-divisions/