Microsoft Corp (MSFT.O) plans to slash thousands of jobs with some roles expected to be axed in engineering and human resources divisions, according to media reports on Tuesday.
The expected job cuts would be the most recent in the U.S. technology sector, where companies including Meta Platforms Inc (META.O) and Amazon.com Inc (AMZN.O) have reported retrenchment exercises in response to waning demand and a worsening global economic outlook.
Microsoft’s move could suggest that the tech sector may continue to cut jobs.
“From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen,” Morningstar analyst Dan Romanoff said.
U.K. broadcaster Sky News reported, mentioning sources, Microsoft intends to lay off about 5% of its employees, or about 11,000 roles.
The company plans to slash jobs in a number of engineering divisions on Wednesday, Bloomberg News reported, according to a person with knowledge of the matter, while Insider reported that Microsoft could axe recruiting staff by as much as one-third.
The reductions will be substantially larger than other rounds in the previous year, the Bloomberg report said. Microsoft would not comment on the reports.
The company had employed 221,000 people – on a full-time basis- including 122,000 in the U.S. and 99,000 internationally, as of June 30, according to filings.
Microsoft is facing pressure to sustain growth rates at its cloud unit Azure, after several quarters of downturn in the personal computer market hit Windows and devices sales.Buy Crypto Now
It had said in July 2022 that a few roles had been eliminated. In October, news site Axios reported that Microsoft had fired less than 1,000 employees across several divisions.
Shares of Microsoft, which is expected to announce quarterly results on Jan. 24, were slightly higher in late afternoon trading.