Microsoft is cutting hundreds of jobs at its Azure cloud unit, Business Insider reported Monday. The move adds to a series of layoffs in the tech and media industries this year.
The layoffs affect teams including Azure for Operators and Mission Engineering, with up to 1,500 job cuts in Azure for Operators alone. “Organizational and personnel changes are a necessary and regular part of our business. We will continue to prioritize and invest in our future and support our customers and partners,” a Microsoft spokesperson said.
The cuts follow the company shedding 1,900 jobs at Activision Blizzard and Xbox in January. Despite the layoffs, Microsoft’s Azure cloud has grown significantly, fueled by heavy investments in artificial intelligence and a strategic partnership with OpenAI, the creator of ChatGPT.
The Azure for Operators and Mission Engineering teams are part of the Strategic Missions and Technologies organization, which was created in 2021 to focus on quantum computing and space projects. It has secured 53,000 Azure AI customers, more than a third of which were acquired in the last 12 months.
The second largest cloud provider Microsoft Azure increased its market share to 26 percent in Q4 2023, up from 23 percent in Q4 2022. Additionally, Microsoft is revamping its mixed reality organization but will continue to sell the HoloLens 2 augmented reality headset, a company spokesperson said.
Alphabet-owned Google is laying off at least 100 employees from various teams in its cloud unit, CNBC reported Monday. According to internal correspondence, influential roles include sales, operations, engineering, consulting, and “marketing” strategies. “We will continue to evolve our business to meet our customers’ priorities and the significant opportunity ahead”.
“We remain committed to investing in areas critical to our business and ensuring our long-term success. “Google Cloud is the third largest provider, growing from 26 percent to 10 percent in Q4 2023. As of December 31, 2023, Google Cloud’s revenue was $74.1 billion, compared to $64.3 billion at the end of 2022.
Google Cloud also continues to focus on expanding channel partnerships to accelerate growth. It tripled the number of co-selling deals with partners starting in 2022.
The layoffs come after Google laid off an unspecified number of employees across teams in April as part of a cost-cutting drive. Google also laid off hundreds of workers in early January, reflecting a broader trend of job cuts in the tech and media industries amid economic uncertainty.
