Nokia merger has created redundant employees.
Microsoft is set for its biggest round of layoffs in five years, people familiar with the matter have told Bloomberg.
The software giant is currently absorbing Nokia's mobile phone division, and looks to refine its workforce to help with the integration.
Jobs will be cut from areas that Microsoft and Nokia divisions overlap. In 2009, Microsoft cut 5,800 jobs.
Last week, Microsoft boss Satya Nadella said that his firm is no longer a 'devices and services' company.
Steve Ballmer's successor instead sees the tech giant as a "productivity and platform company", it was revealed in an open letter he sent to all full-time employees today.
Nadella, who took over as chief executive in February, wrote a missive to staff describing how he defined Redmond, adding that Ballmer's devices and services label no longer applied.
He wrote: "While the devices and services description was helpful in starting our transformation, we now need to hone in on our unique strategy.
"At our core, Microsoft is the productivity and platform company for the mobile-first and cloud-first world. We will reinvent productivity to empower every person and every organization on the planet to do more and achieve more."
Going into detail, he said productivity for employees, teams and entire businesses was all connected, just like platforms are for "individuals, IT and developers".
The company currently has 127,104 employees, after claiming 30,000 from the Nokia handset acquisition.
Source: Company Press Release