Microsoft doubles down on quantum computing and other science projects in latest reorg

• Microsoft on Monday cut hundreds Azure jobs to focus on AI investments, Business Insider reported.
• An internal memo said a focus to "define the AI wave" was behind the changes.
• The company is also increasing investments in quantum computing and other science projects.

Quantum computing is a gnarly technical challenge that tech giants have been hacking away at for more than a decade.

Microsoft isn't giving up, according to an internal memo detailing cuts in other parts of the company's operations.

Business Insider broke the news on Monday that Microsoft is cutting hundreds of jobs from its Azure cloud business. Executive Jason Zander blamed the cuts on Microsoft's need to purse AI investments, according to an internal memo obtained by BI.

In that memo, Zander also discussed other areas where Microsoft is doubling down, although he still described this as part of the company's broader AI efforts.

"Looking ahead, we will increase investments in Quantum and Science, demonstrating the exciting possibilities of AI and cloud computing," Zander wrote in the memo.

He highlighted Microsoft breakthroughs, such as the discovery of a new battery electrolyte that he said uses 70% less lithium, as well as the first demonstration of "reliable logical qubits."

Traditional computers rely on bits representing ones and zeros to complete tasks. In contrast, a quantum bit, or "qubit," represents a one and a zero at the same time. Many qubits working together could in theory create a computer that performs some calculations exponentially faster.

"We have more innovations like this already under way and are seeing an acceleration of discovery with our customers as well," Zander also wrote in the memo. "Going forward we will accelerate the product roadmap and build up this next generation business, building on the foundation we established with Azure Quantum Elements and infrastructure components built in AFO."

AFO is Microsoft's Azure for Operators, a team from which Microsoft on Monday cut as many as 1,500 employees, according to an estimate from one of the people familiar with the cuts.

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