The job situation in the US technology industry is still not optimistic. Microsoft and Google have both been reported to be reducing their workforce in their fastest-growing cloud computing departments. This year, several US technology companies, including Amazon and Salesforce, have announced layoffs.
Silicon Valley's layoffs are still fierce, and even the cloud business that relies on artificial intelligence to make big profits couldn't escape the disaster.
According to insiders, Microsoft is about to lay off hundreds of people in its cloud computing business department Azure, affecting the Azure for Operators and Mission Engineering teams. It is estimated that up to 1500 people may be laid off from the Azure for Operators team.
The background of their layoffs is not due to poor business, but rather the opposite. Due to Microsoft's large investment in artificial intelligence and the technical support it received from partner OpenAI, Microsoft Azure is experiencing unprecedented growth.
The Azure for Operators and Mission Engineering teams belong to a department called SMT, which was created in 2021 to achieve Microsoft's lunar landing goals. The main task of this department is to combine cutting-edge projects such as quantum computing and space with government cloud business.
In addition to Microsoft, Alphabet, Google's parent company, is also cutting employees from several teams in its cloud computing department, which is one of Google's fastest-growing businesses. An internal memo shows that Google notified employees last week that they would be laid off in multiple teams, including sales, consulting, and operations, with at least 100 positions being eliminated.
On the one hand is the rapidly expanding business, on the other hand is the relentless layoff plan. This seems to indicate that Silicon Valley is still on the difficult path of cost control this year, exacerbating concerns in the market about the layoffs of technology and media.
The layoffs continue.
In January of this year, Microsoft had already cut 1,900 jobs at Activision Blizzard and Xbox. In addition, on Monday, Microsoft confirmed that some employees responsible for mixed reality work will be laid off, which may affect the department responsible for the HoloLens 2 augmented reality headset, but Microsoft will continue to sell this product.
Since its release in 2015, Microsoft's HoloLens has not been very successful, but because the US Department of Defense requires Microsoft to develop an upgraded version of the headset, Microsoft has not given up this business, but has reduced its investment in augmented and virtual reality.
A Microsoft spokesperson said that organizational and employee adjustments are necessary and routine processes for its business management. Microsoft will continue to prioritize and invest in future strategic growth areas and provide support to its customers and partners.
A Google spokesperson pointed out that the layoffs are to better align with the market, and the layoffs of each team will be gradual. Since the beginning of 2023, Google has continued to lay off employees and strengthened employee evaluations. Many Google employees have complained that under stricter management, they need less resources to work.
Last month, Google also laid off at least 200 employees from its core departments, including key teams and core engineering talent pools. In addition, Amazon and Salesforce have also laid off hundreds of employees since this year.