Jan 17 (Reuters) – Microsoft Corp (MSFT.O) plans to cut thousands of jobs, with some positions expected to be eliminated in its human resources and engineering departments, according to media reports Tuesday.
The expected layoffs would be the latest in the U.S. technology sector, where companies including Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O) announced layoffs in response to slowing demand and a worsening global economic outlook.
Microsoft’s move could mean the tech sector could continue to lose jobs.
“From a big picture perspective, another upcoming round of layoffs at Microsoft suggests that the environment is not improving and will likely continue to deteriorate,” said Morningstar analyst Dan Romanoff.
British broadcaster Sky News reportedciting sources that Microsoft plans to cut about 5% of its workforce, or about 11,000 positions.
The company plans to cut jobs in a number of engineering divisions on Wednesday, Bloomberg News reported, according to a person familiar with the matter, while Insider reported that Microsoft may cut its recruiting staff by a third.
The cuts will be significantly larger than other rounds in the past year, the Bloomberg report said.
Microsoft declined to comment on the reports.
The company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally as of June 30, according to the filings.
It’s Microsoft under pressure to maintain the pace of growth in its Azure cloud division after several quarters of decline in the PC market hurt Windows and device sales.
In July last year, it was said that a small number of roles had been eliminated. In October, the news site Axios reported that Microsoft has cut less than 1,000 employees in several divisions.
Shares of Microsoft, which is due to report quarterly results on Jan. 24, were marginally higher in late afternoon trading.
Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila
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