The Stockholm office of the tech firm, which was co-founded by a Swede then later bought by Microsoft, is to be closed as part of a long-term plan to reduce the geographic spread of its offices, Swedish financial newspaper Dagens Industri (DI) reports.
"Microsoft has made the difficult decision to start consultations with trade unions to close the Skype office in Stockholm, potentially putting at risk all 120 employees," a Microsoft spokesperson confirmed in a written statement provided to The Local.
DI cites an anonymous source as saying that all 120 employees of the Stockholm office have been given notice of termination.
"This proposal is consistent with our long term aim to reduce our geographical footprint and co-locate teams to enable better collaboration, improved engineering efficiencies and increase the pace of innovation and quality. We are deeply committed to doing everything we can to help all the impacted through this process and where possible, offer new opportunities to those affected," Microsoft added.
Skype was founded in 2003 by Dane Janus Friis and Swede Niklas Zennström. It has had several owners since, with Microsoft buying the firm outright for $8.5 billion in 2011.