Microsoft removed Alon Haimovich, head of its Israeli subsidiary, after an internal investigation into the unit's dealings with Israel's military and defence ministry, according to reports on Monday. The probe examined concerns that Microsoft technology was used in surveillance of Palestinians [1, 2, 3, 4].

Reports said Microsoft Israel's work with the Israeli military and the Ministry of Defense came under scrutiny after questions over whether Azure cloud services and AI products helped store intercepted Palestinian phone calls and other surveillance data. Microsoft previously opened an inquiry after media reports raised those allegations, and Brad Smith said the company acted because it wanted to protect privacy and stop mass surveillance of civilians. “Microsoft is not a government or a state - we are a private company - and like any company we decide what products and services to offer our customers,” he said. “We decided to investigate the Guardian's claims about the IDF's use of Azure to store recordings of phone calls obtained through extensive and mass surveillance in Gaza and the West Bank, based on two principles: protecting privacy and preventing mass surveillance of citizens.” [1, 2]

Sources said other managers in Microsoft Israel also left or were removed as part of the shake-up. The reports differed on the wording of Haimovich's exit, with one saying he would step down, another saying Microsoft fired or ousted him, and a third describing a quiet removal from the role [1, 3, 4].

Microsoft Israel was also reportedly placed under the management of Microsoft France while the company searched for a new general manager. One report said Microsoft ended Unit 8200's access to cloud services and AI products after initial findings, and another linked the dispute to public pressure and boycott campaigns aimed at Microsoft and Xbox over the company's ties to Israel [1, 2, 3, 4].

Globes reported on May 11, 2026, that Haimovich had left his position after an investigation into Microsoft Israel's work with the Ministry of Defense. The company was still seeking a replacement general manager [4, 2, 3].