The Redmond, Wash.-based tech giant notified employees about the layoffs Wednesday, a day after Sky News first reported it. The reduction represents about five per cent of Microsoft’s global workforce, the company said. (The Logic)

Talking point: The cuts are a response to an anticipated recession and customers spending less, CEO Satya Nadella said in a memo to staff. The company expects it will result in a US$1.2-billion charge in severance and hardware changes. “We will align our cost structure with our revenue and where we see customer demand,” said Nadella. When asked if the layoffs will affect Canadian employees, Microsoft Canada referred to its company announcement. Microsoft cut roughly 1,000 positions in October and this latest round comes as layoffs in the tech sector deepen. Amazon, for example, is starting on its 18,000 cuts announced earlier this month. Shares of Microsoft closed down nearly two per cent on the Nasdaq Wednesday.