The UK office of one of the world’s leading technology firms, the Microsoft-owned Skype, is to close, it has been reported.
According to the Financial Times (FT), the move is likely to lead to the loss of many of the nearly 400 jobs at the London HQ.
The reports that one of the most valuable “unicorns” – those tech firms valued at more than $1bn (￡768m) – in Europe is to leave London, will come as a blow at a time when the UK is trying to position itself as an attractive option after the Brexit vote.
Microsoft said it has “made the decision to unify some engineering positions, potentially putting at risk a number of globally focused Skype and Yammer roles”, the newspaper reported.
It said the firm would enter into a consultation process to help those affected by the redundancies and was “deeply committed to doing everything we can to help those impacted through the process”.
The news follows encouraging signs for the British technology industry, which was reported as hosting 18 of Europe’s 47 unicorns in June.
Russ Shaw, who served as a vice president at Skype until it was bought by the Redmond-based technology giant for $8.5bn in 2011, said the move was disappointing.
“Skype is one of Europe’s iconic technology businesses and a genuine ‘unicorn’ with an amazing pedigree of innovation and talent,” he told the FT.
“While London is working hard to build a strong base of world-class technology businesses, this decision is a step in the wrong direction.”
A former employee, whom the paper did not name, was quoted as saying that the move was unsurprising because many of the people who had been at Skype when the takeover happened had gradually been replaced. “I know it’s natural to integrate, but Skype is a shell of the company it once was.
“One of the things that was always a big issue for Microsoft was that big decisions at Skype would usually always be made in Europe, not in Redmond. Now, it’s a Redmond, Microsoft-led company rather than an independent Skype.”
Microsoft has not responded to the Guardian’s request for comment.
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