Microsoft is reportedly cutting 200 to 400 Azure jobs in mainland China, marking another pullback as US and Chinese data rules tighten around cross-border technology work.
Employees in Beijing and Shanghai were told their roles would end on July 6. The reported cuts come as Microsoft has repeatedly reduced or relocated parts of its China-based cloud and AI workforce over the past two years.
Azure layoffs affect Beijing and Shanghai teams
The South China Morning Post (SCMP) reported that some Azure staff in Beijing and Shanghai received emails last week saying their roles would be terminated. The affected workers are expected to leave Azure on July 6 and receive severance packages based on tenure, plus up to seven months’ pay.
SCMP cited five affected employees who requested anonymity because they were not authorized to speak to the media. Two sources estimated the layoffs would affect between 200 and 400 workers.
Microsoft did not directly confirm the number of affected roles. “As part of managing our global business, we shared an optional internal transfer opportunity with eligible employees,” a Microsoft representative told SCMP.
“We remain focused on serving customers and growing our business globally,” the representative added.
Some staff were offered the option to relocate to Canada, according to SCMP. Other Microsoft units, including its DevDiv developer division, the Microsoft Software Technology Centre Asia, and Microsoft AI teams across Shanghai and Suzhou, were reportedly unaffected.
Data rules add pressure to cloud operations
The reported layoffs come as Washington and Beijing increase oversight of cross-border data flows.
SCMP noted that the US Department of Justice implemented its Data Security Program last year, restricting some American organizations from sending datasets to employees, vendors, and investors in “countries of concern,” including China.
China has also tightened its data governance framework through the Data Security Law and Personal Information Protection Law, both introduced in 2021.
The Next Web said that Azure in mainland China operates as a physically and legally separate instance run by local partner 21Vianet, rather than as a standard global Azure region.
More Microsoft news
Microsoft has reduced its China-based operations before
The latest cuts mark at least Microsoft’s third downsizing in China over the past two years, according to SCMP.
In October, Microsoft cut jobs on the Azure team while offering some employees relocation opportunities to Australia, according to reports from mainland Chinese media. In 2024, Microsoft offered China-based AI and Azure employees the option to move to overseas locations, including the US, Australia, and Ireland.
Firstpost also mentioned that the company had relocated some China-based AI researchers to a new Vancouver lab in 2023. Beyond cloud and AI, Microsoft closed its authorized physical stores in mainland China in 2024 and shifted to online sales and third-party retail partners.
The layoffs add to a series of workforce and operational changes Microsoft has made in China as both Washington and Beijing tighten oversight of data and technology flows.
For more on how major tech companies are handling workforce cuts, read our coverage of Meta layoffs and employee concerns after Mark Zuckerberg’s reassurance.
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