Per the bloodletting, the tech giant will record an impairment and restructuring charge of about $950 million -- roughly $200 million of which will go toward severance payments.

The move may suggest that Microsoft is throwing in the towel after failing to gain market traction with its Lumia-branded smartphones.

Yet, CEO Satya Nadella puts the restructuring in different terms.

“We are focusing our phone efforts where we have differentiation -- with enterprises that value security, manageability and our Continuum capability, and consumers who value the same,” Nadella stated. “We will continue to innovate across devices and on our cloud services across all mobile platforms.”

It’s no secret that Microsoft’s mobile business has been adrift for years; buying Nokia Devices and Services business in 2014 didn’t help matters.

Quantifying its bad bet on the sprawling and superseded phone maker, Microsoft took a $7.5 billion non-cash impairment charge -- in addition to a restructuring charge of $780 million -- related to assets associated with the Nokia acquisition, last year.

Just last week, Microsoft said it was selling its feature phone business for $350 million.

Microsoft Mobile Oy in Finland will be the hardest hit. It could see up to 1,350 jobs lost. The company said the cut affect another 500 jobs globally, but it did specify region.

Employees working for Microsoft Oy, a separate Microsoft sales subsidiary based in Espoo, will not be impacted by the planned reductions.