Big Tech crisis: Microsoft to cut 11,000 jobs given the worsening global economic outlook.

Thousands of positions will be removed at Microsoft Corp., with certain positions in the engineering and human resources departments possibly being eliminated, according to reports in the media on Tuesday.

The anticipated layoffs would be the most recent in the American technology sector, where businesses including Amazon.com Inc. and Meta Platforms Inc. have launched retrenchment exercises in response to sluggish demand and a worsened prognosis for the world economy.

The action by Microsoft may be a sign that employment losses in the tech industry will persist.

Another round of planned layoffs at Microsoft implies that, in the overall scheme of things, things are not getting better and may be getting worse, according to Morningstar analyst Dan Romanoff.

According to sources cited by U.K. network Sky News, Microsoft intends to eliminate 11,000 jobs or around 5% of the workforce.

According to a source familiar with the situation, the company plans to make job cuts in several engineering departments on Wednesday. The Insider also revealed that Microsoft may reduce its recruiting personnel by up to one-third.

According to the Bloomberg article, the cuts will be far deeper than in prior rounds.

Microsoft chose not to respond to the rumors.

As of June 30, the corporation employed 221,000 full-time employees, including 122,000 in the US and 99,000 abroad, according to documents.

After the personal computer industry suffered for several quarters, Microsoft is under pressure to keep Azure’s growth rates up. This is because Windows and device sales were negatively impacted.

A few roles had been cut back, it had started in July of last year. Axios, a news outlet, reported in October that Microsoft has fired less than 1,000 workers from several divisions.

Microsoft’s stock was just a little bit higher in late afternoon trading; the company is scheduled to release its quarterly results on January 24.