News: Site closure is part of plans to streamline smartphone hardware business.
Technology giant Microsoft has confirmed that it will shut down its Finnish mobile phone unit and cut nearly 1,350 jobs in the country.
The move is part of the company’s plans announced in May to streamline its smartphone hardware business.
The company had said that it would cut 1,850 jobs and incur an impairment and restructuring cost of around $950m.
Over two-thirds of the planned job cuts were expected to take place at Microsoft Mobile Oy in Finland.
Microsoft said that it should complete a significant part of the layoff process by the end of the calendar year and fully complete it by July 2017, which marks the end of the company's next fiscal year.
Following the purchase of Nokia in a $7.2bn deal in 2013, Microsoft has closed many facilities and retrenched thousands of employees amid intensifying competition in the smartphone segment.
In February, a report said that Microsoft was looking to close two mobile-phone manufacturing plants in Beijing, China, eliminating 9,000 jobs. Nokia operated those facilities before it was bought by Microsoft.
Beijing Youth Daily cited a source familiar with the matter as saying that the company was contemplating to shift some of the manufacturing operations to Vietnam.
The shutdown of facilities in China was part of the company's 18,000 job cuts announced earlier. The massive layoffs were considered as the biggest in Microsoft's history.
In April, Nokia had also announced job cuts as part of a €900m cost-saving plan after purchasing its French rival Alcatel-Lucent for €15.6bn.
Though Nokia did not disclose the number of layoffs, several reports had estimated that the company could cut 1,300 of its 6,850 employees in Finland and 1,400 of its 4,800 headcount in Germany.
Microsoft posted a 6% decline in its revenue to $20.5bn for the March quarter on year-over-year basis. Sales of Microsoft Office products and cloud services for business grew by 7% in constant currency driven by Office 365 revenue growth of 63% year-over-year.
In June, the company agreed to buy professional social network site LinkedIn in an all-cash transaction valued at $26.2bn.