Microsoft is letting go of about 200 people from its Azure cloud team in China, cutting the group's size by half.
Some of those affected are based in Beijing and Shanghai, with their last day set for July 6.
The company is offering nearly seven months' pay as severance to help ease the transition.
Regulations drive Microsoft's China layoffs
This is Microsoft's third round of layoffs in China in two years, driven by tighter U.S.-China tech regulations.
Some employees have been offered a chance to relocate abroad, including options like Canada.
Despite these cuts, teams like Microsoft AI and DevDiv aren't impacted, so while things are shifting, Microsoft isn't pulling out of China entirely.