Microsoft Azure executive asked teams to find 20% cost cuts, report says
A senior Microsoft cloud boss has asked team leaders to find ways to cut costs by at least 20%, The Information reported, citing people who know about the plans.
We have not independently verified the report, and Microsoft disputes it.
“Azure leadership has not directed teams to develop cost-cutting plans,” a Microsoft spokesperson told The Information.
“Every responsible company prepares for a range of scenarios and market dynamics, both positive and negative,” the spokesperson added.
According to the report, the request came from Girish Bablani, who runs the Azure group that builds software for Microsoft’s cloud servers. The group has about 11,500 staff, Stocktwits reported, citing The Information.
The savings would help pay for Microsoft’s heavy spending on AI data centres, the report said. They would also fund higher pay to retain staff being courted by rivals such as Meta and Anthropic.
The exact steps are still being discussed,...
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