Microsoft Ousts ’Israel’ Unit Head Amid Spy Probe

By Staff, Agencies

Microsoft has reportedly dismissed the head of its "Israel" subsidiary and several top managers after an internal probe into alleged use of its Azure cloud services for surveillance on Palestinians in Gaza and the West Bank.

According to reports cited by Globes, the decision follows mounting internal and external scrutiny over how Microsoft’s infrastructure may have been used by "Israeli" intelligence units to store and process surveillance data, some of it collected in the occupied West Bank.

The internal review was launched last month amid concerns that the "Israeli" subsidiary’s operations could expose Microsoft to legal and regulatory risks in Europe.

The investigation reportedly focused on Azure servers used for government-related data storage, which are based in Europe and therefore subject to EU regulatory oversight.

As a result of the findings, Microsoft is said to have removed the general manager and other senior staff and to have temporarily placed the "Israeli" unit under the management of Microsoft France during the transition period.

At the center of the controversy is the alleged use of Azure cloud infrastructure by "Israeli" intelligence units to store surveillance data connected to Palestinians in Gaza and the West Bank.

The issue has drawn increasing attention since 2023, amid wider allegations about the use of commercial cloud services in military and intelligence operations.

Microsoft faces growing backlash from employees, activists, and public figures over "Israeli" entity-linked contracts and broader concerns about its technology being used for state surveillance and enforcement.