Microsoft Cuts Up to 400 Azure Cloud Jobs in China Amid Tightening Data Regulations

Jun 10, 2026
South China Morning Post
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Summary

Microsoft is cutting up to 400 Azure cloud jobs in China, with employees in Beijing and Shanghai losing their roles on July 6 as tightening U.S. and Chinese data regulations continue to squeeze the tech giant's operations in the region.

Key Points

  • Microsoft is laying off between 200 and 400 employees at its Azure cloud unit in China, with affected staff in Beijing and Shanghai set to lose their roles on July 6 and receiving severance packages plus up to seven months' pay.
  • The cuts mark at least the third round of downsizing by Microsoft in China within two years, driven by tightening data regulations imposed by both Washington and Beijing on cross-border data flows.
  • Some affected employees are being offered the option to relocate to Canada, while other Microsoft divisions in China, including DevDiv, Microsoft Software Technology Centre Asia, and AI teams in Shanghai and Suzhou, remain unaffected.

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