After purchasing the Nokia Devices and Services division earlier this year, Microsoft has announced 18,000 layoffs over the next year – the largest in the company’s history. The layoffs will affect the Nokia division which sees 12,500 layoffs and this is being done to eliminate any overlap with current Microsoft teams. CEO Satya Nadella stated that these job cuts would ensure “more productive, impactful teams across Microsoft.”

It was earlier reported that marketing teams in the Xbox division could be affected as well but Microsoft Devices group head Stephen Elop said there would be “limited change” in that regard. “With a set of changes already implemented earlier this year in these teams, this means there will be limited change for the Surface, Xbox hardware, PPI/meetings or next generation teams.”

Nadella already talked about how important the Xbox brand was to Microsoft and with the recent success of the console in the US – which doubled its sales in June after the price drop – it’s highly unlikely the situation changes any time soon. Stay tuned for more information on the same as it arrives.

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Though Microsoft CEO Satya Nadella talked about how essential the Xbox Division was to the company, it seems the division could be affected fairly soon. Many more lay-offs are planned though according to Bloomberg which said that Microsoft is looking to “slim down” on divisions which overlap with its Nokia handset business.

The announcement is likely to come later this week and you can expect lay-offs from both the Nokia division and marketing position in the Xbox division. Engineering jobs are also likely to be affected in the process.

Right now, the details of everything are being worked out and Microsoft offered no details to Bloomberg about the truth of its report. However, it’s expected to be the biggest round of job cuts since 2009 when 5,800 individuals left the company. We’ll need to wait for more information as Microsoft confirms the cuts but what are your thoughts on it all? Let us know in the comments below.

In an internal memo to employees, Microsoft CEO Steve Ballmer stated that the deal allowed for Microsoft to accesss “incredible talent, technology and IP.” “Clearly, greater success with phones will strengthen the overall opportunity for us and our partners to deliver on our strategy to create a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.”

Nokia CEO Stephen Elop, who previous worked for Microsoft, will be head of the division. Meanwhile 32,000 Nokia employees will officially be a part of Microsoft. A substantial step forward for Microsoft or a rather odd choice? Stay tuned for more.