Microsoft's Azure Seeks 20% Cost Cuts While Boosting AI Talent Compensation

Microsoft's Azure cloud division is exploring a 20% cost reduction even as it confronts massive capital expenditures on AI data centers and competitive pressure from Anthropic and Meta for engineering talent. Girish Bablani, president of Azure's software development group overseeing roughly 11,500 employees, directed senior leaders to identify cost-cutting measures, according to reporting from The Information. The move aims to free resources to finance higher salaries for retaining talent amid aggressive recruiting by rivals Anthropic and Meta.