Microsoft Azure executives are reportedly discussing ways to cut expenses by at least 20% in the Azure software development group. The discussions, led by Azure president Girish Bablani, involve his 11,500-person division and come as Microsoft faces the high cost of building AI infrastructure.
The potential cuts could help offset heavy spending on data centers and fund higher salaries to retain AI talent amid fierce competition. No specific measures have been finalized, but they could include reducing reliance on external contractors.
A Microsoft spokesperson disputed the characterization, saying Azure leadership has not directed teams to develop cost-cutting plans. The spokesperson added that responsible companies prepare for a range of market scenarios.