Microsoft is poised to announce the biggest round of layoffs in its history, surpassing the more than 5,000 from 2009.

The announcement is anticipated early next week as the company finds itself in competition with leaner companies like Apple and Google, according to the Guardian.

Many of the layoffs will hit the Nokia handset departments, marketing and engineering divisions, software testers, as well as the European-based Xbox department, according to Bloomberg.

It comes as no surprise since Microsoft announced in September it plans $600 million in cost savings annually. That will involve job cuts, especially in areas the two companies overlap.

The move is being made so that the company can focus on mobile devices and cloud computing, Microsoft CEO Satya Nadella said.

Traditionally, the engineering teams are split between program managers, developers and testers, but because of new cloud methods, it doesn't make sense to have a separate team of testers, Nadella told Bloomberg.

The company had reported an increase in cloud computing and subscription-based Office programs in April, according to the Guardian.

Sources told Bloomberg the cuts will be more than the 2,800 which reduced the workforce by 5 percent in 2009.

As of June 5 the company had 127,104 employees, which includes the Nokia unit after the acquisition.

Nokia was the last European mobile company, located in Finland, operating independently before the about $7 billion deal was made with Microsoft.

Details of the announcement are expected July 22, when Nadella reports the quarterly earnings for the company, according to the Guardian.

Nadella is a company veteran and the third CEO in the company's history who took over in February.

Microsoft is not along in making major cuts, according to Bloomberg. Hewlett-Packard Co. announced as many as 16,000 jobs will be cut, after already reducing the workforce by 34,000 and reporting an 11-month decline in sales, CEO Meg Whitman said.