Microsoft shares have fallen nearly 30% after the company announced that it is cutting more than 700 jobs in a bid to save cash.
The news comes as Microsoft is looking to cut another 700 jobs as part of its efforts to trim its costs.
Microsoft has said it will spend $4 billion on a deal with a Chinese technology company to bring its technology to the smartphone market, but analysts said the cut may be much smaller than previously reported.
Microsoft shares closed down 0.4% at $16.35, or $1.09 per share.
Shares of Cisco Systems, one of Microsoft’s largest rivals, were up about 5%.
Microsoft has been struggling to generate revenue, particularly as its PC business has been hammered by the emergence of smartphones.
But analysts have noted that the company’s growth is slowing down.
In September, Microsoft said it would cut 7,400 jobs in the fourth quarter of 2017, which is a 25% reduction from the same quarter last year.
The company said it was also slashing a separate 1,500 jobs in its Office division.