Microsoft cuts hundreds of Azure jobs in China

Microsoft is cutting hundreds of jobs in its Azure cloud unit in China, marking the company's third round of downsizing in the country in two years. The layoffs affect between 200 and 400 employees in Beijing and Shanghai, with their final day of work set for July 6.

Affected staff were notified of the terminations via email last week and will receive severance packages based on their tenure, including up to seven months of compensation. Some employees were offered the option to relocate, including to Canada, while most will depart the company. The cuts are specific to the Azure cloud division, with other Microsoft teams in China, including its developer division and AI groups in Shanghai and Suzhou, reported to be unaffected.

In a statement, Microsoft said it had shared an optional internal transfer opportunity with eligible employees and remains focused on serving customers and growing its business globally. The company declined to comment on the specific scale of the job reductions.

The move is part of a broader strategic shift as Microsoft navigates tightening data regulations from both the United States and Chinese governments. Washington has imposed export controls on...