Microsoft has confirmed its plans to engage in layoffs, with plans to cut 10,000 jobs, or nearly 5% of its total workforce.

Rumors surfaced Tuesday that Microsoft was preparing to lay off employees, with reports placing the number at 11,000, or 5% of the company’s workforce. Some analysts, however, expected the total number to be higher.

According to AP News, Microsoft has confirmed its plans, although the total number is coming in slightly slower than initially reported, at 10,000. In a regulatory filing, Microsoft blamed “macroeconomic conditions and changing customer priorities.”

Interestingly, as AP points out, the layoffs are still less than the number of jobs Microsoft added during the pandemic, a testament to the popularity of its products and cloud services.

CEO Satya Nadella also made clear the company has not frozen all hiring, but will continue to hire for specific roles.

“While we are eliminating roles in some areas, we will continue to hire in key strategic areas,” Nadella said.