Microsoft Corp. (MSFT) is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia Oyj’s handset unit, people with knowledge of the company’s plans said.

Chief Executive Officer Satya Nadella said in an interview last week that he has preparing to make sweeping changes at Microsoft. The reductions will probably be in engineering, marketing and areas of overlap with Nokia, said the people, who asked not to be identified because the plans aren’t public.

The restructuring — which may be unveiled as soon as this week — may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, two of the people said. Some details are still being worked out, two of the people said.

Nadella, who took over from Steve Ballmer in February, said in the interview that Microsoft would have to become more focused and efficient. The CEO issued his first company mission statement last week, calling for greater emphasis on mobile devices, cloud-computing and productivity software as consumers and businesses buy fewer personal computers to check e-mail, browse the Web and access data and software.

Not unexpected, but a real shame for the individual people who might be impacted.

Source: Microsoft Corp. via Bloomberg.com.

Upodate via Reuters –

HELSINKI (Reuters) – Microsoft Corp is planning to cut 1,000 jobs in Finland from its mobile phone unit, a Finnish daily said on Wednesday, quoting anonymous sources.