Microsoft Says Azure Leaders Did Not Order Reported 20% Cost-Cut Plans

The president of Azure’s software department reportedly asked senior managers to propose ways to cut costs by at least 20%. It is unclear whether any measures would include layoffs.

The reported request comes as Microsoft faces rising spending on data centers and efforts to retain talent in the competitive AI market. Microsoft spokesperson told The Information that “Azure leadership has not directed teams to develop cost-cutting plans.”

Microsoft shares reached a record high on October 13. Separately, analyst firm Phillip Securities downgraded the stock from “Moderate Buy” to “Hold” on October 14.