Microsoft Launches New Round of Layoffs: Shanghai Azure Cloud Team Hit, Compensation Set at N+4

Microsoft Initiates Another Round of Layoffs: Shanghai Azure Cloud Team Among Those Affected, Compensation Set at N+4

[TechWeb | October 10] — According to a report by Ifeng News, Microsoft has begun a new wave of layoffs, marking another major workforce adjustment within the tech giant.

On the first working day after China’s National Day holiday (October 9), several employees at Microsoft’s Shanghai office received an internal email titled “Important Business Update.” Many staff members immediately recognized the message as an indication of upcoming “organizational optimization” measures.

Sources reveal that this round of layoffs primarily targets Microsoft’s Azure Cloud business team. However, the compensation terms differ slightly from those offered during the July layoffs, which provided a maximum payout of N+7. This time, affected employees are reportedly being offered N+4 packages, without an additional signing bonus. Several employees mentioned they are still in discussions with HR to clarify details.

It’s also been disclosed that Microsoft had earlier proposed relocation opportunities to Australia for certain roles. Employees who declined the offer are now included in the layoff list.

This move follows a series of workforce reductions by Microsoft throughout 2024. In July, the company confirmed 9,000 global job cuts, marking its largest layoff since early 2023.

According to data from Windows Report, Microsoft has laid off over 15,000 employees since May, with the heaviest cuts occurring in May (approximately 6,000) and July (about 9,000). Additional layoffs in June, August, and September also affected teams across Azure Cloud, global sales, and engineering divisions.

Notably, the July layoff package was more generous, offering N+4+1(+2) — one month of buffer time, plus an extra two months’ pay for employees who signed agreements before July 11. In total, that amounted to N+7 compensation.

(Reported by Xiao Jian)