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Microsoft (NASDAQ:MSFT) is contemplating cutting roughly 5% of its workforce, or around 11,000 jobs, according to Sky News in the UK on Tuesday.
They state that the company’s latest move to reduce its workforce is a result of the slowing global economy, with job cuts occurring globally.
Sky said the number of job losses could not be verified, but one analyst told them that Wall Street would be surprised if the figure was not higher.
The tech giant has a market value of $1.78 trillion and is set to report its second-quarter earnings next week.
However, if the job cuts are finalized an announcement could come before Microsoft’s chairman and chief executive, Satya Nadella, updates investors on its performance on January 24, stated Sky News.
Various tech companies have cut jobs in recent weeks. Earlier on Tuesday, the Wall Street Journal reported that Unity is set to lay off more workers due to mounting recession fears.
Guggenheim downgraded Microsoft to Sell on Tuesday, telling investors that while most “see MSFT as a large stable business that can weather any storm, it does have vulnerabilities, some of which could be exacerbated by this macro slowdown.”
