Nadella, 47, who took over from Steve Ballmer in February at the head of the US software giant, has been at the centre of a controversy since early October over his comments at a conference in Arizona.

Los Angeles - Software giant Microsoft could be announcing the biggest round of job cuts in five years after integrating Nokia's handset business, Bloomberg News reported on Tuesday, citing people with knowledge of the company's plan.

The goal would be to slim some parts of the Nokia unit that overlap with parts of the Microsoft business, according to the report.

The announcement could come this week. The restructuring could exceed the 5 800 jobs cut in 2009, the report said.

Microsoft chief executive Satya Nadella announced in an e-mail last week to employees a strategy change with a greater focus on mobile devices and cloud computing.

“Finally, every team across Microsoft must find ways to simplify and move faster, more efficiently,” he wrote.

“We will increase the fluidity of information and ideas by taking actions to flatten the organisation and develop leaner business processes.” Microsoft, which has more than 127 000 employees, will announce quarterly earnings on July 22. - Sapa-dpa