Global tech giant Microsoft is expected to announce another round of significant job cuts as part of its restructuring efforts to reduce costs in a rapidly changing technology industry.
However, the latest cuts are an extension of layoffs announced by Microsoft last year, sources close to the development told The New York Times.
Last year, Microsoft had planned to retrench nearly 18,000 employees in the company.
The new layoffs are likely to occur in company's hardware division and smartphone unit, among others.
Microsoft had an employee base of over 118,000 people across its offices worldwide by the end of March this year.
In an email to the company's employees last month, Microsoft's chief executive Satya Nadella had said that the company would have to "make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value".
Last week, AOL struck a deal with Microsoft to acquire its online display advertising business. Display advertising accounted for only a minor part of Microsoft's revenues.
Another area of concern for Microsoft is its falling market share in the smartphone business, ever since it took over Nokia's handset unit. Further, Microsoft has been struggling to position its Windows Phone operating system as a big alternative to the top two mobile operating systems, Apple's iOS and Google's Android.
A management rejig at Microsoft last month saw four of its senior executives, including former CEO of Nokia Stephen Elop and an ex-advisor to former US President Bill Clinton, Mark Penn, leaving the company.
However, the company is unlikely to quit the smartphone business in short term, taking into account the growing importance of mobile segment in the technology industry.