Microsoft let go of a small portion of employees on Tuesday as it prepares to undergo its regularly scheduled realignment of business priorities. The move comes as Microsoft's tech peers also trim their workforces over fears of a possible economic recession looming over the horizon.

In a statement to CNBC, Microsoft confirmed that it let go of a number of employees as part of its annual realignment process. A spokesperson for Microsoft insisted that the numbers were small and represented less than 1% of Microsoft’s entire workforce.

“Today we notified a small number of employees that their roles have been eliminated. This was a result of a strategic realignment, and, like all companies, we evaluate our business on a regular basis. We continue to invest in certain areas and grow headcount in the year ahead," read the company's statement.

Companies have been bracing themselves for belt-tightening ahead of what many executives predict will be an economic recession within the next year. Tech stocks like Microsoft's have seen investors withdrawing their funds in favor of more stable assets like Treasury bonds as opposed to growth-oriented stocks.

As of 1:48 PM EST on Tuesday, Microsoft’s stock stood at $256.77 per share, down by 2.93% in the last day.

Microsoft’s pullback on hiring follows other peers in the tech sector, who have announced layoffs, hiring pauses or even withdrawals of employment offers to recently hired workers.

In June, Netflix announced that it would be letting go of 300 employees at the conclusion of the second quarter after initially laying off 150 workers only a month earlier. Other tech companies including Uber, Meta and Twitter have similarly announced layoffs in specific business areas and paused hiring in these sections.

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