Seattle, Washington - About 10,000 jobs are being axed at Microsoft as the software giant becomes the latest tech firm to announce hefty staff cuts, blaming them on an economic downturn.

The group said the cuts – almost 5% of its workforce – were being made in response to "macroeconomic conditions and changing customer priorities."

It plans to complete the job losses by the end of September.

The company said it had notified employees of the layoffs, some of which begin immediately.

The company said it will also be making changes to its hardware portfolio and consolidating its leased office locations.

Details of the job cuts follow reports on Tuesday over the planned layoffs and come after Microsoft already slashed some roles last year, although numbers were not confirmed at the time.

Microsoft joins a raft of rivals, such as Twitter, Amazon and Facebook owner Meta, in trimming their workforces on fears of a slowdown in demand as the US and global economy slows.

Staff eligible for US benefits will be offered a redundancy package including "above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination" according to the company.