Microsoft is undergoing another round of layoffs, this time reportedly cutting over 1,000 jobs in its Azure for Carriers unit. This move comes after the company eliminated more than 10,000 positions last year. The layoffs are being attributed to a shift in focus towards artificial intelligence (AI).
A Microsoft spokesperson confirmed the layoffs and stated that organizational and workforce adjustments are a regular part of managing the business. The company intends to prioritize and invest in strategic growth areas to support customers and partners. Reports indicate that up to 1,500 employees in the Azure for Carriers unit may be affected by the cuts, although the precise number is unclear. It is believed that the layoffs are part of a realignment around the company’s AI efforts, according to a memo from Azure executive Jason Zander leaked to Business Insider.
Despite posting strong revenue and profit growth in the previous quarter, Microsoft’s decision to downsize is reflective of broader trends in the tech industry. In January 2023, the company announced plans to cut 10,000 employees, following a wave of layoffs that began earlier that year. Other tech giants like Alphabet and Amazon have also resorted to job cuts despite their cloud units being among the fastest-growing in the respective companies.
Alphabet, which cut 12,000 jobs last year, reportedly laid off 100 employees from its Google Cloud unit recently. Similarly, Amazon Web Services let go of several hundred employees from its Sales, Marketing, and Global Services division in April. While the cloud business continues to expand, major players like Microsoft, Alphabet, and Amazon are increasing their focus on AI. They are ramping up capital expenditure to meet the rising demand for AI in cloud infrastructure.
In conclusion, Microsoft’s latest round of layoffs in the Azure for Carriers unit signals a strategic shift towards AI technology. The company, along with other tech giants, is prioritizing AI investments as part of its growth strategy. Despite ongoing job cuts, Microsoft remains committed to its customers and partners and aims to enhance its capabilities in the rapidly evolving tech landscape.
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https://www.fierce-network.com/cloud/microsoft-goes-back-its-layoff-bs
