Update: Market Chatter: Microsoft Eyeing Cutbacks at Azure Cloud Rental Unit

MT Newswires Live10-15 17:55

(Updates with Microsoft's response in the third and fourth paragraphs.)

Microsoft (MSFT) is considering significant cutbacks at its Azure cloud server rental unit, The Information reported Tuesday, citing an unnamed person with direct knowledge of the situation.

Girish Bablani, president of Azure, has told senior leaders of the 11,500-employee unit to come up with schemes to reduce costs by at least 20%, the report said.

Microsoft refuted the report, saying Azure leadership hasn't instructed teams to develop cost-cutting plans.

"Every responsible company prepares for a range of scenarios and market dynamics, both positive and negative," a Microsoft spokesperson said in a statement e-mailed to MT Newswires. "This is inaccurate and careless reporting."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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