TORONTO – Microsoft is expected to announce its biggest round of job cuts in five years, as the technology giant aims to slim down operations and integrate Nokia’s handset unit.
According to a Bloomberg report, the cuts – which may come as soon as this week – will be to Nokia and business divisions, including marketing and engineering. The report cited “people with knowledge of the company’s plans.”
Microsoft aquired Nokia’s line-up of smartphones and a portfolio of patents and services in September to compete with the likes of Apple and Google.
READ MORE: Nokia stock surges on Microsoft $7.2 billion takeover deal
The company had 127,104 employees after adding about 30,000 from the Nokia acquisition, according to the report. It said the number may even exceed the 5,800 cuts made five years ago.
“When Microsoft agreed to acquire Nokia’s mobile-phone business in September, the software maker pledged $600 million in annual cost savings in the 18 months after the deal closes,” read the report, published Tuesday.
“Meeting that commitment will probably involve job cuts in areas where the two companies overlap, said the people.”
Microsoft did not comment on the report.
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