Microsoft is cutting 10,000 workers, almost five per cent of its workforce, joining other tech companies that have scaled back their pandemic-era expansions.

The comp said in a regulatory filing Wednesday that the layoffs were a response to “macroeconomic conditions and changing customer priorities”.

The Redmond, Washington-based software giant said it will also be making changes to its hardware portfolio and consolidating its leased office locations.

Microsoft is cutting far fewer jobs than it had added during the COVID-19 pandemic as it responded to a boom in demand for its workplace software and cloud computing services with so many people working and studying from home.