Microsoft slashes job impacting employees at Azure cloud and MSN.com

Microsoft said on Thursday it had reduced its jobs to employees across geographies and teams as it entered a new financial year from July 1.
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The Washington-based software giant declined to elaborate on the roles which had been eliminated, their numbers or their locations.

Business Insider had earlier reported that the company cut under 1,000 jobs across its business this week.

The company cut roles at its online news portal MSN.com, as it shifted to an AI-powered algorithmic feed, according to the report, which added that jobs were also cut in the Microsoft Azure cloud division. Azure Cloud business growth slowed to 59 percent from 62 percent in the second quarter.

Late last month, Microsoft said it would close its retail stores and take a related pre-tax asset impairment charge of $450 million amid the coronavirus outbreak.

The spokesman said it is common for the company to re-evaluate its business as it enters a new fiscal year.

In 2017, Microsoft cut thousands of jobs around the same time as it underwent a reorganization that impacted its sales and marketing teams.

Late in April, Microsoft said its revenue rose 15 percent to $35.02 billion in the third quarter ending March 31, powered by demand for its Teams chat and online meeting app and Xbox gaming services as the world shifted to working from home because of the pandemic.

Net income of Microsoft rose to $10.75 billion, or $1.40 per share, from $8.81 billion, or $1.14 per share, a year earlier.