Microsoft Cuts Hundreds of Jobs in China Azure Unit Amid Data Regulations
- tech360.tv
- Jun 10
- 2 min read
Microsoft is laying off hundreds of employees at its Azure cloud unit in China. The move comes as the technology giant navigates tightening data regulations in both Washington and Beijing.
The staff affected work in Beijing and Shanghai. Sources estimate the layoffs will impact between 200 and 400 workers.
These employees will cease employment at Azure and receive severance packages based on their tenure. Some workers will also receive up to seven months' pay.
The company offered some staff the option to relocate to Canada. A Microsoft representative stated that the firm shared an optional internal transfer opportunity with eligible employees as part of managing the global business.
Other Microsoft units remain unaffected. These include the DevDiv developer division, Microsoft Software Technology Centre Asia, and artificial intelligence teams across Shanghai and Suzhou.
This latest downsizing is the third round of cuts by the company in the country over two years. Previously, the company cut jobs on the Azure team while offering some staff relocation opportunities to Australia.
In 2024, the organisation offered its China-based artificial intelligence and Azure employees the option to move to overseas locations, including the US, Australia, and Ireland. The company maintained at the time that it remained committed to China.
Beyond its cloud and AI units, Microsoft has scaled back its physical retail presence in the country. The company closed its authorised bricks-and-mortar stores in 2024, shifting entirely to online sales and select third-party retail partners.
The restructuring follows increased oversight of cross-border data flows. The US Department of Justice implemented its Data Security Programme, which restricts American organisations from sending some datasets to employees, vendors, and investors in countries of concern, including China.
Beijing has also tightened its own data governance framework. The government introduced the Data Security Law and the Personal Information Protection Law in 2021.
Microsoft is cutting hundreds of jobs in its Azure cloud unit in China.
The layoffs affect between 200 and 400 employees in Beijing and Shanghai.
Affected staff are eligible for severance packages and some relocation options to Canada.
Source: SCMP
