Microsoft Corporation's plan to cut jobs by up to 18,000, or around 14 percent of its total workforce, will affect its phone engineering unit in Beijing as the company seeks to concentrate its engineering efforts in Finland, said Executive Vice President Stephen Elop.

In a message posted on Microsoft's website, Elop said engineering works in Beijing, China and San Diego, California will be trimmed down but both sites will continue to serve as supporting roles.

Like Us on Facebook

Phone production, however, will continue in Beijing and Dongguan in China but the focus will be in Hanoi, Vietnam. The company seeks to exit from Komaron, Hungary, Elop added.

"While we plan to reduce the engineering in Beijing and San Diego, both sites will continue to have supporting roles, including affordable devices in Beijing and supporting specific US requirements in San Diego," said Elop.

The number of affected workers in China has not been disclosed as of this writing but earlier announcement said about two-thirds of the 18,000 job cuts will come from the phone and tablet staff.

On Thursday, Microsoft revealed plans to cut up to 18,000 jobs, the largest layoff so far in the history of the company, as Chief Executive Officer Satya Nadella aims to streamline the company after it acquired Nokia's devices and services business.

Nadella also hopes to reshape the aging PC industry giant into a nimbler rival to Apple and Google.

The job cuts will begin with a first batch of 13,000. Microsoft said it will notify employees will be notified over the next six months.

In statement sent to reporters, Microsoft said the massive lay off will cost the company up to US$1.6 billion in benefits and severance pays.

Those Nokia jobs that are being eliminated will include both professionals and factory workers.

TagsMicrosoft Layoff, Microsoft China