Beautiful Virgin Islands

Saturday, Jul 26, 2025

Microsoft to axe thousands of jobs in latest cull by tech giant

Microsoft to axe thousands of jobs in latest cull by tech giant

Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown.

Microsoft is preparing to axe thousands of jobs in the latest move by one of the world's biggest technology companies to reduce its workforce in the face of a slowing global economy.

Sky News has learnt that the US software giant could announce plans to cull a significant number of posts around the world within a matter of days.

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

That figure could not be verified on Tuesday evening, and one analyst suggested that Wall Street would be surprised if the figure was not higher than that.

It was also unclear whether or how many UK-based positions might be affected.

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

If finalised, an announcement about headcount reductions is likely to come before Satya Nadella, Microsoft's chairman and chief executive, updates investors on its financial performance on January 24.

In recent weeks, a slew of large tech companies have wielded the axe, with Amazon disclosing 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, the owner of Facebook, is reducing its workforce by approximately 11,000 roles.

Big technology companies have been forced to respond to signs of a global economic slowdown, with many having recruited tens of thousands of additional employees during the pandemic.


Satya Nadella will update investors on Microsoft's financial performance next week

Under the ownership of Elon Musk, Twitter has also moved to cut thousands of jobs, while 6,000 have also gone at the personal computer manufacturer HP.

Microsoft warned in October of a slowdown in its cloud computing business, an acknowledgement that major corporate customers were re-evaluating spending in response to economic challenges.

"In a world facing increasing headwinds, digital technology is the ultimate tailwind," Mr Nadella said in October.

"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."

The company has been transformed under Mr Nadella's leadership, though its earnings have been hampered by the strength of the dollar in recent quarters.

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

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

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

Ahead of its earnings next week, Microsoft's stock was downgraded to a sell rating by analysts at Guggenheim, who argued that the figures "may disappoint investors".

"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," they wrote.

Responding to an inquiry from Sky News, a spokesman said Microsoft "does not comment on rumour or speculation".
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
×