Microsoft cut a particular "Ethics and Society" team, but the original article notes:

Microsoft still maintains an active Office of Responsible AI, which is tasked with creating rules and principles to govern the company’s AI initiatives. The company says its overall investment in responsibility work is increasing despite the recent layoffs.

While surely a big deal for people on the eliminated team, this sounds like a minor reshuffle for Microsoft.

In general, figuring out what an effective "responsible AI" team actually does on a day-to-day basis has been a puzzle industry-wide. My impression is that there's been a fair amount of experimentation, and this action might be shutting down a particular approach that is now perceived by Microsoft leadership as less effective than alternatives.

Or else GPT4 hacked the HR system and liquidated some potential foes.