Microsoft directs Azure division to reduce operating costs by twenty percent

Microsoft's Azure software chief told senior managers to find ways to cut costs by at least 20 percent, according to a report published in late 2024. The Azure software development group has around 11,500 employees. Leaders were asked to look at reducing spending on outside contractors. The company has been spending heavily on artificial intelligence data centres, and the cuts could help pay for that. Some of the savings may also go toward higher salaries, because Microsoft wants to compete with companies like Meta and Anthropic for skilled workers. A new executive, Arun Ulag, has been given a broader role overseeing Azure. Microsoft has since said the reporting was inaccurate.