Jan 17 (Reuters) – Microsoft Corp ( MSFT.O ) plans to cut thousands of jobs with some roles expected to be eliminated in human resources and engineering departments, according to media reports on 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 ) have announced job cuts in response to slowing demand and a worsening global economic outlook.
Microsoft’s move could indicate that the technology sector may continue to lose jobs.
“From an overall perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and is likely to continue to deteriorate,” Morningstar analyst Dan Romanoff said.
British broadcaster Sky News reported, citing sources, that Microsoft plans to cut around 5% of its workforce, or around 11,000 roles.
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 could cut its recruiting staff by as much as a third.
The cuts will be significantly larger than other rounds in the past year, says the Bloomberg report.
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 filings.
Microsoft is under pressure to maintain the pace of growth in its cloud unit Azure, after several quarters of PC market decline hurt sales of Windows and devices.
It had said in July last year that a small number of roles had been eliminated. In October, the news site Axios reported that Microsoft had laid off less than 1,000 employees in several divisions.
Shares of Microsoft, which is set to report quarterly results on January 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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