Microsoft laid off under 1,000 employees across several divisions this week, Axios reported on Tuesday, citing a source, making it the latest technology company to cut jobs or slow hiring amid a global economic slowdown. One current employee told The Washington Post that layoffs have also affected the Xbox gaming division.

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The layoffs affected less than 1 per cent of Microsoft's total workforce of around 2,21,000 as of June 30.

The company had said in July that a small number of roles had been eliminated and that it would increase its headcount down the line.

Technology companies, including Meta, Twitter, and Snap, have cut jobs and scaled back hiring in recent months as global economic growth slows due to higher interest rates, rising inflation, and an energy crisis in Europe.

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However, the tech industry managed to profit during the pandemic, Bloomberg reported. Share prices soared as businesses and consumers moved towards Zoom Video Communications, Slack Technologies and Netflix and spent more time on social media and the internet in general.