Microsoft is set to cut 5% of its workforce – or 11,000 roles

Microsoft is set to cut 5% of its workforce – or 11,000 roles – in an effort to cut back costs due to slowing demand

  • Tech giant will axe thousands of jobs in response to global economic slowdown
  • It follows in the footsteps of Amazon and Meta who also announced job losses 
  • Microsoft poised to make announcement within days as stock rating falls 

Microsoft is set to axe thousands of jobs, following in the footsteps of tech giants Amazon and Meta which have also announced huge cutbacks in recent months. 

The software giant, founded by billionaire Bill Gates, is reportedly slashing 5 percent of its 220,000-strong international workforce. 

That means up to 11,000 employees will lose their jobs – though insiders speculate the actual figure could be even higher. 

On Tuesday, Microsoft’s shares were trading at $240.16, down over 20 percent from last year.

Big technology companies are being forced to reduce their workforces in response to signs of a global economic slump, after many recruited tens of thousands of additional employees during the pandemic.

Microsoft, headquartered in Washington, is set to axe 11,000 as it becomes latest tech giant to respond to global economic slowdown

Microsoft, headquartered in Washington, is set to axe 11,000 as it becomes latest tech giant to respond to global economic slowdown

Microsoft's share value plummets over the past year as analysts Guggenheim downgrades its stock rating

Microsoft’s share value plummets over the past year as analysts Guggenheim downgrades its stock rating

Earlier this month Amazon revealed it was planning to cut 18,000 jobs – or 6 percent of its workforce – while Facebook-owner Meta laid off approximately 11,000 roles in November. 

Meanwhile software provider Salesforce is slashing 8,000 jobs and personal computer manufacturer HP has axed 6,000. 

And Twitter owner Elon Musk has come under fire for firing thousands of employees without warning after his $44 billion takeover of the social media giant last year.

Microsoft is now poised to make its own announcement within a matter of days, reports Sky News

A separate report from Insider said the firm could cut staff recruitment by one-third with many teams initiating a hiring freeze.

The company has a market value of $1.78 trillion and is due to report second-quarter earnings next week. 

Of its 221,000 full-time employees, 122,000 are based in the United States as of June 30, according to its filings. 

In July last year the company said it was axing a small number of roles but would replenish its headcount again later in the year. 

Microsoft chairman and chief executive Satya Nadella is expected to update investors on its financial performance on January 24. 

Any workforce cutbacks are expected to be confirmed before then. 

Microsoft chairman and chief executive, pictured, is set to update investors on its financial performance on Jan 24 but job losses are expected to be announced before that

Microsoft chairman and chief executive, pictured, is set to update investors on its financial performance on Jan 24 but job losses are expected to be announced before that 

One analyst told Sky News it expected the actual number of job losses to be even higher than those predicted.

In October Microsoft warned of a slowdown in its cloud computing business.

Nadella said at the time: ‘In a world facing increasing headwinds, digital technology is the ultimate tailwind. 

‘In this environment, we’re focused on helping our customers do more with less while investing in secular growth areas and managing our cost structure in a disciplined way. 

It comes as Microsoft is fighting a regulatory battle to secure approval of its potential $68 billion takeover of Activision Blizzard, the marker of cult-video game Call of Duty. 

Last month it also acquired a $1.8 billion stake in the owner of the London Stock Exchange as part of a long-term cloud computing partnership. 

 Microsoft’s stock rating was downgraded by analysts at Guggenheim ahead of its earnings next week.

The firm wrote: ‘While most investors see Microsoft as a large stable business that can weather any storm, it does have vulnerabilities, some of which could be exacerbated by this macro[economic] slowdown.’

A spokesman for Microsoft told DailyMail.com the firm ‘did not comment on rumour’.  

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