Microsoft is cutting thousands of jobs in the tech giant’s latest cull Business news

Microsoft is preparing to cut thousands of jobs, the latest move by one of the world’s largest technology companies to shrink its workforce in the face of a slowing global economy.

Sky News has learned that the US software giant may announce plans to cull a large number of publications around the world within days.

Microsoftwhich employs more than 220,000 people, including 6,000 in the UK, is said to be considering cutting nearly 5% of its workforce, which if accurate would equate to nearly 11,000 jobs.

That number could not be verified on Tuesday night, and one analyst noted that Wall Street would be surprised if the number was not higher.

It was also not clear whether the number of jobs in the UK would be affected.

The company, which has placed huge bets on cloud computing growth and now has a market capitalization of $1.78 trillion, is set to report second-quarter earnings next week.

If finalized, the staff cuts will likely be announced before Microsoft Chairman and CEO Satya Nadella briefs investors on its financial performance on January 24.

In recent weeks, a slew of big tech companies have wielded the ax, with Amazon revealing plans this month to cut 18,000 jobs, or about 6% of its workforce.

Salesforce, the cloud software provider, said it would cut 8,000 jobs, while Meta, owner of Facebook, is cutting its workforce by about 11,000 jobs.

Big tech companies have had to respond to signs of a global economic slowdown, with many hiring tens of thousands of additional employees during the pandemic.

Under Elon Musk’s ownership, Twitter has also moved to cut thousands of jobs, while 6,000 have gone as well at PC maker HP.

Microsoft warned in October of a slowdown in its cloud computing business, an acknowledgment that major corporate customers are reevaluating spending in response to economic challenges.

“In a world that faces growing headwinds, digital technology is the ultimate tailwind,” Nadella said in October.

“In this environment, we are focused on helping our customers achieve more with less, while investing in secular areas of growth and managing our cost structure in a disciplined manner.”

The company has turned around under Nadella’s leadership, though its earnings have been hampered by a stronger dollar in recent quarters.

It is also locked in a battle with regulators to secure approval for the £56 billion takeover of Activision Blizzard, the maker of Call Of Duty.

Last month, it surprised investors by taking a £1.5 billion stake in the owner of the London Stock Exchange as part of a long-term cloud computing partnership.

Microsoft expects to generate $5 billion in revenue during the life of the alliance.

Ahead of its earnings next week, Microsoft stock was downgraded to a sell rating by analysts at the Guggenheim, who argued that the numbers “may disappoint investors.”

While most investors see Microsoft as a large, stable company that can weather any storm, it does have weaknesses, some of which may be exacerbated by this macro.[economic] Slow down,” they wrote.

In response to a query from Sky News, a Microsoft spokesperson said, “It does not comment on rumor or speculation.”