Microsoft is known to make minor workforce adjustments at the end of its fiscal year. Credit: LCV/Shutterstock.

Microsoft has initiated layoffs impacting hundreds of employees within its Azure cloud business, reported Business Insider, citing sources. 

The reductions have affected the Azure for Operators and Mission Engineering teams, which are integral parts of the Strategic Missions and Technologies (SMT) division. 

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SMT was established in 2021 to focus on advanced projects such as quantum computing and space technologies. 

One of the sources said that the job cuts within the Azure for Operators team could number as many as 1,500.  

The SMT division, led by former Azure head Jason Zander, was formed to consolidate Microsoft’s ‘moonshot’ initiatives, including its government cloud services.  

Microsoft is known to make minor workforce adjustments at the end of its fiscal year on 30 June, but the frequency of layoffs has increased both at Microsoft and across the tech industry.  

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Last year, Microsoft announced it would reduce its workforce by 10,000 employees in the early months of 2023, and it has since implemented additional layoffs. 

Requests for comment from Microsoft did not elicit a response.  

The news of Microsoft’s layoffs coincides with reports from CNBC that Alphabet is also reducing staff across various teams within Google‘s cloud unit. 

According to internal communications seen by CNBC, at least 100 positions have been eliminated, spanning sales, consulting, strategy, operations, and engineering. 

A spokesperson for Google informed CNBC that these incremental cuts across teams are part of an effort to better align its market strategy.  

“As we have shared before, we continue to evolve our business to meet our customers’ priorities and the significant opportunity ahead,” the spokesperson was quoted by CNBC as saying. 

“We maintain our commitment to investing in areas that are critical to our business and ensure our long-term success.”