On October 9, 2025, the first workday following the National Day holiday, certain teams at Microsoft's Shanghai office got an email labeled "Important Business Update." According to employees, this email served as a precursor to an impending personnel restructuring.

The primary focus of this adjustment is the Azure cloud business team. Affected employees are being offered a compensation package of N + 4, where "N" represents the employee's base salary multiplied by the number of years of service, and an additional four months' salary is provided on top of that. Notably, there is no extra signing bonus included in this package. Previously, the company presented employees with the alternative of relocating to Australia. However, those who declined this offer will now be subject to layoffs.

Since May 2025, Microsoft has implemented layoffs affecting over 15,000 employees worldwide. These layoffs have impacted key departments, including global sales, engineering, and the Azure division. In response to these developments, Microsoft stated that organizational adjustments are standard practices in business management. The company also emphasized its commitment to continuing its focus on strategic growth areas in the future.