Microsoft plans to cut around 5 per cent of its global workforce, resulting in the loss of around 11,000 jobs, reports Sky News.
The company has more than 220,000 employees worldwide, including 6,000 in the UK.
The job losses could be announced within days in the face of a global economic downturn, likely before Microsoft reports its second-quarter earnings on 24 January.
This latest round of job cuts follows recent moves by major tech companies worldwide to reduce their workforce and lower costs.
Amazon has announced plans to cut around 6 per cent of its global workforce or 18,000 jobs; Meta plans to cut around 11,000 jobs; and cloud software provider, Salesforce plans to axe 8,000 jobs.
Microsoft warned in October 2022 that it was seeing a slowdown in cloud computing sales as major business customers cut back on spending.