Microsoft's big AI ambitions helped it become the world's most valuable company but at the expense of its Azure team, according to a leaked email memo

Microsoft has been hit by layoffs, cutting across virtually all its departments. At the beginning of 2023, the company CEO Satya Nadella announced that it would cut 10,000 jobs by the end of FY23 Q3. The bloodbath continues with the most recent round of layoffs affecting the company's gaming department. 1900 people lose their jobs across Activision Blizzard, Xbox Game Studios, and ZeniMax Media.

The Redmond giant is in top form and is now the world's most valuable company, ahead of Apple with over $3 trillion in market capitalization. Market analysts predict Microsoft is on the verge of hitting its iPhone moment with AI, consistent with its latest earnings call report.

With the vast increase in revenue, operating income, net income, and more, you'd suppose Microsoft would dial down on the massive layoffs. But this isn't the case. Earlier this week, Microsoft announced another round of layoffs. This time, affecting 1,000 employees in its HoloLens 2 and Azure departments (via CNBC).

Interestingly, a Microsoft Spokesman confirmed that the company isn't pulling the plug on the production of the augmented reality headset and intends to stay the course while speaking to The Verge:

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