Microsoft considering 1,500 layoffs targetting Azure cloud unit - reports 

Concerns as Microsoft set to cut up to 1,500 jobs. The Microsoft building in Sandyford Dublin. Photo: Sasko Lazarov/RollingNews.ie

Microsoft is set to cut hundreds of jobs at its Azure cloud unit, according to a report by Business Insider, which would mark the latest round of layoffs to hit the declining tech sector.

The cuts will impact employees including Azure for Operators and Mission Engineering, the report said, adding that as many as 1,500 jobs could be lost according to people familiar with the situation.

"Organisational 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 news agency, Reuters.

Earlier this year, Microsoft announced it would shed 1,900 jobstarget="_blank" rel="noopener noreferrer"> across its Activision Blizzard and Xbox divisions, with more than 130 workers in Blizzard's Cork office being laid off following its acquisition by Microsoft. 

The company's latest round of job cuts targeting its Azure cloud unit is likely to cause concern for Microsoft's Dublin operations, which underwent several restructurings last year. 

The firm's Irish subsidiary employs around 3,500 people across its Dublin and Belfast offices, with around 250 jobs being lost last year as part of global cost-cutting initiatives. 

Microsoft's Irish operations also include teams working with Azure. 

Last year saw Microsoft Ireland report an operating profit of €3.5bn following a rise in revenue totalling €69.9bn in 2023. 

Microsoft's Azure cloud is witnessing sharp growth due to the company's heavy investment in AI and its access to the coveted technologies of ChatGPT maker OpenAI through their strategic partnership.

Azure for Operations and Mission Engineering are a part of an organization called Strategic Missions and Technologies which was formed in 2021 and tasked with quantum computing and space, the Business Insider reported.

Separately, Microsoft has started restructuring its mixed reality organization but will continue to sell its augmented reality headset, the HoloLens 2, a spokesperson for the company told Reuters on Monday.

Business Insider reported in 2022 that the company scrapped plans for HoloLens 3.

Additional reporting from Reuters.