Microsoft and Google are planning hundreds of job cuts in their respective cloud units.
Microsoft lays off hundreds, cites a focus on AI as motivation
Microsoft's layoffs are primarily impacting Azure for operators and mission engineering, reports Business Insider. This could be as many as 1,500 job cuts for operators, the publication said citing "people familiar with the situation."
"Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners," a Microsoft spokesperson told Reuters.
These latest layoffs follow around 1,900 cuts at the Activision Blizzard and Xbox departments in January 2024.
The operators and mission engineering for Azure is part of an organization called Strategic Missions and Technologies which was formed in 2021 and tasked with quantum computing and space technologies.
According to a separate Business Insider report, the layoffs were blamed in a leaked memo from exec Jason Zander on the company's focus on defining the "AI Wave."
"Our clear focus as a company is to define the AI wave and empower all our customers to succeed in the adoption of this transformative technology," Jason Zander wrote in an internal email viewed by Insider. "Along the way, we make decisions that align with our long-term vision and strategy while ensuring the sustainability and growth of Microsoft."
Google lays off 100 from cloud unit
Similarly, Google is said to be laying off at least 100 people from several teams in its cloud unit.
Employees were notified last week of the job cuts which will be in sales, consulting, "go to market" strategy, operations, and engineering in the Asia Pacific region reported Business Insider.
Some of those laid off were recent hires - one of which had yet to complete their onboarding process.
"As we've shared before, we continue to evolve our business to meet our customers' priorities and the significant opportunity ahead," a Google spokesperson told BI in a statement. "We maintain our commitment to investing in areas that are critical to our business and ensure our long-term success."
Google also cut a "small number" of roles in its global affairs earlier this month.
In April, the company announced its second major round of layoffs which were expected to impact its finance and real estate units.
On the finance side, the teams affected will include Google's Treasury, Business Services, and Revenue Cash Operations. This followed around 800 job cuts in January.
