220 jobs hit as Microsoft shuts Skype office

Microsoft (Euronext: MSF.NX - news) is closing the London headquarters of Skype as part of a review which will put 220 jobs at risk.

Skype was launched in the capital in 2003 and bought by Microsoft for $8.5bn (£6.5bn) in 2011.

The US tech giant said it was consolidating its offices in London at a new base at Paddington.

It said it had reviewed some London-based roles and "made the decision to unify some engineering positions".

Microsoft said this potentially put at risk a number of "globally focused" jobs at Skype as well as corporate social network business Yammer.

"We are deeply committed to doing everything we can to help those impacted through this process," the company said.

Microsoft said it was starting a consultation and would offer new opportunities where possible.

The US firm said in July that is was cutting 2,850 jobs, mainly affecting its troubled smartphone business, adding to 9,000 cuts over the previous year.