Microsoft’s new wave of cuts hit 1000 employees in teams across the country.
The software company’s revenue is expected to decline.
It is mainly due to sluggish sales of PC Windows licences.
The move is in line with efforts to reduce costs at both large and small technology firms.
Many Silicon Valley giants including Meta and Salesforce have put a freeze on hiring this year.
In the past months Coinbase, Netflix and others have implemented job cuts.
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Microsoft spokesperson said: “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly.
“We will continue to invest in our business and hire in key growth areas in the year ahead.”
The statement comes three months after Microsoft stated that it had cut fewer than 1 percent of its workforce.
Microsoft forecasted a slower-than-expected 10 percent increase in sales for the first quarter of the current fiscal year in July.