Microsoft is set to cut its $100 million annual profit in 2018 by as much as $1.2 billion, according to a company filing with the Securities and Exchange Commission.
The announcement came in a filing with U.S. regulators on Thursday, according with the Wall Street Journal.
Microsoft will also write down $1 billion of revenue for the year.
Microsoft has faced pressure from its Windows and Office software businesses to trim expenses, but Microsoft has said that it wants to continue to invest in the long-term.
The filing, which comes as Microsoft continues to file its first-quarter results, shows that the company expects to earn $3.2 to $3 and a half billion for 2018, the filing shows.
Microsoft said in the filing that its revenue for 2018 is expected to be $11.7 billion, or about $1,600 per employee.
Microsoft Chief Financial Officer Tom Hindle told investors last week that the Microsoft’s outlook for revenue for 2019 is “solid,” adding that the Redmond, Washington-based company expects revenue of $7.2 trillion, or $1 trillion, in 2019.