Microsoft layoffs 2024 became the latest big tech layoff and and showed us that this trend continues. Microsoft is laying off hundreds of employees in its Azure and mixed reality departments. These layoffs, which affect up to 1,500 positions, are part of a larger reorganization within the company’s Strategic Missions and Technologies (SMT) group. This change is driven by Microsoft’s increased focus on artificial intelligence (AI) and other advanced technologies.
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Everything you need to know about the Microsoft layoffs 2024
Microsoft has strategically decided to lay off hundreds of employees across its Azure and mixed reality businesses. Here’s a detailed look into the specifics and implications of these layoffs:
Number of employees affected
- Up to 1,500 positions are being cut within the Azure for Operators and Mission Engineering sectors.
These layoffs are part of a broader organizational restructuring within Microsoft’s Strategic Missions and Technologies (SMT) organization.
Departments impacted
- Azure for Operators: This team focuses on providing cloud solutions tailored for telecommunications operators.
- Mission Engineering: This group works on mission-critical engineering projects.
- HoloLens 2 and Mixed Reality: Microsoft’s mixed reality division, including teams working on the HoloLens 2, is also affected.
Microsoft layoffs 2024’s affect on MSFT stock
Despite a slight decline, Microsoft stock remains resilient and appears largely unaffected by the recent layoffs. Investors seem confident in the company’s strategic shift towards artificial intelligence and other growth areas, viewing the layoffs as a necessary adjustment to stay competitive in the rapidly evolving tech landscape.
Microsoft will continue to invest anyway
The SMT organization, led by Jason Zander, the former executive vice president of Microsoft Azure, is known for its work in quantum computing, space exploration, and other cutting-edge technologies.
A Microsoft spokesperson emphasized that these layoffs are part of “organizational and workforce adjustments,” which are a regular part of managing the business. Despite these reductions, the company remains committed to investing in strategic growth areas and supporting its customers and partners.
Of course, Microsoft layoffs 2024 is related to AI, like everything in the world right now
Microsoft’s increased focus on artificial intelligence is a key reason for these layoffs. The company is shifting resources to boost its AI capabilities, which are seen as crucial for future growth. Because of this, Microsoft is stopping work on some projects like Azure Operator 5G Core and Azure Operator Call Protection. Employees from these projects will move to the Azure Edge and Platform product line in the Cloud + AI group, reflecting the new focus on AI.
Impact on mixed reality
The layoffs also hit the HoloLens 2 and mixed reality departments. However, Microsoft is still committed to major projects like the U.S. Department of Defense’s Integrated Visual Augmentation System (IVAS) and Windows 365 mixed reality hardware. This shows that while some parts of mixed reality are being reduced, important projects will continue.
Featured image credit: Eray Eliaçık/Bing
