London Daily

Focus on the big picture.
Friday, Jun 20, 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

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×