Microsoft will reportedly lay off around 1,500 employees under its Azure cloud unit. According to Business Insider sources, the layoffs will impact teams including Azure for Operators and Mission Engineering. The sources noted that the company is is cutting as many as 1,500 jobs.
Microsoft spokesperson told Reuters that the layoffs are a "regular" and "necessary" part of the business. The spokesperson also said that organizational and workforce adjustments are part of managing the company.
"We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners," the spokesperson told Reuters.
Thanks to its strategic alliance with ChatGPT maker OpenAI and its significant investment in artificial intelligence (AI), Microsoft's Azure cloud is experiencing sharp growth.
Microsoft to Lay Off Hundreds of Employees
Microsoft is the latest firm to join the growing number of Tech layoffs this year. On April 18, a few weeks after introducing a novel AI tool that could produce audio based on a text command, Stability AI was reportedly preparing a significant reorganization that would result in job losses.
According to an internal memo that was leaked to the public, the AI company is expected to undergo dramatic changes following the resignation of previous CEO and founder Emad Mostaque.
The memo from Chief Technology Officer Christian Laforte and temporary Chief Operating Officer Shan Shan Wong said the company plans layoffs as a cost-cutting measure. Reports suggest that the layoffs impacted about 20 workers, or over 10% of the company's total headcount.
Last February, Cisco Systems also announced that it will be laying off 4,000 employees worldwide, or about 5% of its workforce, as part of its restructuring, which will focus on "key priority areas" such as artificial intelligence (AI).
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Gaming Layoffs
A day before that, or on April 17, it was reported that Take-Two Interactive, the publisher of Grand Theft Auto, planned to cancel several projects and reduce its personnel by 5% of its overall workforce. or about 579 employees.
According to reports, the layoffs follow CEO Strauss Zelnick's previous statement that the publisher has no intention of making layoffs as part of its campaign to reduce costs. The decision is predicted to result in yearly cost savings of over $165 million.
Take-Two had also previously said that it had finished "right-sizing" the company and that, in part, the anticipated release of Grand Theft Auto 6 in 2025 will put it in "growth mode" moving forward.
Baldur's Gate 3's publishing director, Michael Douse, recently discussed the urgent problem of industry-wide layoffs that have afflicted game developers in recent years. Described these layoffs as an "avoidable mess," Douse noted that layoffs are preventable and should not be considered an inevitable part of the gaming industry.
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