The head of Microsoft’s Israeli subsidiary, Alon Haimovich, will step down following an internal inquiry into the company’s business dealings with the Israeli military.

The investigation, ordered last year after a Guardian report revealed that Israel’s Unit 8200 used Microsoft technology to operate a mass surveillance system collecting Palestinian civilian phone calls, has now concluded.

While the full findings remain undisclosed, sources said they prompted Haimovich’s departure, along with several other managers.

The inquiry, which involved US law firm Covington & Burling, focused on whether Microsoft Israel employees were fully transparent with headquarters about Unit 8200’s use of the company’s Azure cloud platform.

The Israeli military intelligence unit reportedly built a system using Azure to store and analyse millions of calls from Gaza and the West Bank.

Microsoft previously said its senior executives, including CEO Satya Nadella, were unaware that Unit 8200 had stored intercepted communications.

The company confirmed it had terminated the unit’s access to cloud services and AI products after concluding the use violated Microsoft’s terms of service prohibiting mass surveillance.

Haimovich, who oversaw Microsoft Israel’s growth and partnerships, did not comment.

In a staff email announcing his departure, he highlighted his role in establishing Israel as “one of Microsoft’s fastest-growing markets worldwide.”