Microsoft to shut London Skype office amid fourth quarter cuts

Skype's offices in London are set to close as parent company Microsoft makes efforts to cut costs during the fourth quarter of this year, leading to the loss of around 220 jobs.

Skype was created in 2003, with its London office opened in the years before it was bought by US tech giant Microsoft for £6.5bn in 2011.

Microsoft announced in July that 2,850 jobs would be lost across the company's global operations in the last quarter of 2016, although it is not known when exactly the London office will close.

"Microsoft reviewed some London-based roles and made the decision to unify some engineering positions, potentially putting at risk a number of globally focused Skype and Yammer roles," the company said in a statement.

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

The move may prompt comments that investment in the UK is falling as a result of Britain's decision to leave the European Union.

It is a blow to London's efforts to establish itself as major technological hub in Europe, and will add further fuel to the claims that Microsoft carelessly dismantles companies it acquires.