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Microsoft is cutting hundreds of jobs from the Azure business, sources say. The layoffs impact Azure for Operators and Mission Engineering teams. AdvertisementMicrosoft is cutting hundreds of employees from its Azure cloud business, according to people familiar with the situation. One of the people estimated the Azure for Operators layoffs involved as many as 1,500 job cuts. This story is available exclusively to Business Insider subscribers.
Persons: Organizations: Microsoft, Mission Engineering, Service, Business
WASHINGTON, Nov 16 (Reuters) - Microsoft will provide Lockheed Martin with its first classified cloud as part of a three-year deal, executives said on Wednesday, making it easier for the United States' largest weapons maker to share information with the Pentagon, its top customer. The secure cloud partnership will permit Lockheed (LMT.N) to avoid some of the repetitive security compliance processes for each new government project. "Whenever you stand up a new classified program, it takes weeks to months to just get the I.T. Microsoft has made a "substantial investment" and spent more than seven years building the classified cloud being used by the Department of Defense, Zach Kramer, general manager, Mission Engineering at Microsoft Corp (MSFT.O) said in the joint interview with Lockheed. And really what that does is enable the collaboration with others," Kramer said, such as the Department of Defense or, once they join a classified cloud program, suppliers.
Microsoft laid off employees across the company, with a person familiar saying it affected under 1,000 jobs. Microsoft in July said it planned to lay off less than 1% of its 180,000-person workforce. Microsoft laid off employees in teams across the company, according to affected employees who spoke to Insider. This week's layoffs affect less than 1,000 employees, according to a person familiar with the matter. Zach Kramer, who runs Microsoft's Mission Engineering team, in an email viewed by Insider notified employees that the group would be "deprioritizing work already underway."
Microsoft last year created an division for the company's big bets, from quantum to government IT. An internal org chart viewed by Insider shows the 12 people in charge of these emerging businesses. The org chart was part of a presentation about the team's first growth strategy. An internal Microsoft org chart shows the 12 people in charge of Microsoft's emerging technologies and businesses. Also included in the org chart are legal, finance, marketing, and human resources executives an internal presentation lists as SMT "business partners."
The team formed to manage Microsoft's biggest moonshots just released its first growth strategy, according to internal documents viewed by Insider. Microsoft expects the total addressable market through the company's 2025 fiscal year for Microsoft Federal to reach $105 billion, and $149 billion for the Microsoft Communications unit. Azure Quantum, led by CVP Zulfi Alam: "Azure Quantum team is engineering the quantum machine to solve for a better future." Azure for Operators, led by CVP Martin Lund "is accelerating the Cloud transformation of mission critical communication networks for Core and Edge services." Mission Engineering, led by Zach Kramer: "Mission engineering is delivering the innovation and technology that creates the ecosystem that transform mission."
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