Microsoft is laying off hundreds of employees in its Azure cloud division in China, marking at least its third round of downsizing in the country in two years. The cuts are expected to affect between 200 and 400 workers in Beijing and Shanghai, with their employment set to end on July 6.
The move comes as the U.S. technology giant navigates tightening data regulations in both Washington and Beijing. Azure's operations in mainland China are distinct from its global services, run through a local partner to comply with Chinese data sovereignty laws. A Microsoft representative stated that the company is offering internal transfer opportunities to some eligible employees and remains focused on serving its customers in the region.