Microsoft plans to cut "thousands" of jobs, with a majority of them outside the United States, a person familiar with the matter told Reuters news agency.
Reuters reported on Monday that Microsoft would undergo a reorganisation that would impact its sales and marketing teams as the company doubles down on its fast-growing cloud business.
Microsoft's shares are down 0.7% at $68.63 today.
The Redmond, Washington-based company employed about 120,000 people globally as of 31 March, with sales and marketing teams accounting for about 19% of the workforce.
Microsoft has notified some employees about the reductions, the source said.
However, in some geographies, the company plans to notify employees that their jobs are under consideration, the source added.
In a statement Microsoft said it is implementing changes to better serve its customers but didn't say how may people around the world were expected to be made redundant.
It said like all companies it evaluates its business on a regular basis and this can result in increased investment in some places and from time-to-time re-deployment in others.
It is understood that any impact on staff numbers working at Microsoft Ireland will be very minimal.
In February the company announced it was recruiting 600 new staff here.
500 were to work in a new inside sales centre and 100 in other business functions.
It is understood recruitment is now complete, with the permanent workforce in Ireland now standing at 1,800, while the company also has around 700 contractors here.
Microsoft's new purpose built campus in Leopardstown, which will house the entire Irish workforce, is also nearing completion and is due to open in October.
The technology giant cut 7,800 jobs in 2015, and 4,700 last year.
Since taking over as Chief Executive in 2014, Satya Nadella has sharpened the company's focus on its cloud computing unit to counter a prolonged slowdown in the PC market.