Yesterday's layoffs at Microsoft included job losses at the company's Global Foundation Services unit, which builds and operates the company's data centers, according to TechHermit. "The Data Center and Network Engineering organizations were particularly hit hard with cuts," he writes. Microsoft's IT department has also been downsized in this round of layoffs, which affects about 3,000 employees, including 1,200 in the Seattle area.
It's not surprising that GFS would see some cutbacks, given the reduction in data center investment and Microsoft's decision to postpone construction of its Iowa data center and extend the timetables on its Chicago and Dublin facilities. Those sites will ramp up when Microsoft needs more capacity for its online services unit.