Microsoft has reportedly placed its Israeli operations under the management of its French division, following an internal investigation into the company’s dealings with Israeli security agencies, and the use of its Azure cloud infrastructure in surveillance, intelligence spying, and military-related operations targeting Palestinians.
The move comes after the departure of Microsoft Israel’s general manager, Alon Haimovich, amid growing allegations surrounding Microsoft’s reported ties with Israeli military and intelligence entities, particularly regarding the use of Azure cloud infrastructure in surveillance operations connected to the what the UN and several watchdog organizations deemed as genocide in Gaza.
Multiple reports also indicate that several senior figures within the company’s government and governance divisions have exited amid the ongoing scrutiny.
The controversy and allegations intensified further following protests led by former Microsoft employee Ibtihal Aboussad in April 2025, when she publicly accused the company of enabling Israeli military operations through its cloud and AI technologies.
Aboussad, who interrupted Microsoft’s 50th anniversary event earlier that year, later circulated internal messages condemning the company’s alleged complicity, and drawing attention to the reported use of Microsoft infrastructure in surveillance and targeting systems connected to the war on Gaza.
Shortly after the protest, Microsoft fired Ibtihal. Her dismissal sparked further backlash online, and drew renewed attention to internal dissent within major tech companies over their relationships with Israeli military and government institutions. Ibtihal continued her activism after leaving Microsoft, and contributed to a campaign titled “No Azure for Apartheid.”
According to reports by the Israeli newspaper, Globes, and other international outlets, Microsoft’s global leadership launched an internal review over concerns that Azure cloud services may have been used in ways that violated the company’s ethical guidelines and transparency policies, particularly in relation to surveillance activities involving Palestinians.
The accusations trace back to previous investigations by The Guardian, +972 Magazine, and Local Call, which alleged that Israel’s Unit 8200 intelligence division used Microsoft Azure infrastructure to spy on, store and analyze intercepted Palestinian communications. The reports stated the data was linked to broader surveillance and military targeting operations.
Microsoft has previously stated that its senior leadership was unaware of how certain systems were being used, and denied that its technologies were knowingly deployed to harm civilians. However, reports suggest the company later restricted access to some Azure and AI services connected to Unit 8200 following preliminary findings from its inquiry.
As part of the restructuring, oversight of Microsoft Israel has reportedly been transferred temporarily to Microsoft France, while the company continues its investigation and searches for new leadership.
The development adds to growing international pressure on major tech companies over their complicity in military and surveillance operations through cloud computing and AI technologies, particularly in the context of Israel’s war on Gaza and the increasing scrutiny surrounding the role of private tech infrastructure in enabling state violence and mass surveillance.
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