Microsoft has reportedly begun layoffs affecting parts of its Azure cloud team in Shanghai, according to Chinese media outlet Phoenix Technology. Employees said they received an internal email titled “Important Business Update,” which they understood as a notification of job cuts. The new severance package reportedly offers about three months less compensation than the July layoffs and does not include a signing bonus. Some staff were offered relocation opportunities to Australia but were laid off if they declined.
The move comes as Microsoft continues a broader corporate restructuring. Windows Report noted on October 7 that the company has cut more than 15,000 positions globally since May 2025, mainly across its Azure, sales, and engineering divisions. A Microsoft spokesperson said organizational and workforce adjustments are “a necessary and routine part” of business management, adding that the company will continue investing in strategic growth areas to support customers and partners. [Phoenix Technology, in Chinese]
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