(Bloomberg) -- Microsoft Corp. plans to eliminate as many as 7,800 positions as part of the technology company’s reorganization of its phone-hardware business under Chief Executive Officer Satya Nadella.

Microsoft will record an impairment charge of about $7.6 billion on its Nokia handset unit and a restructuring charge of about $750 million to $850 million, the Redmond, Washington-based company said in a statement Wednesday. Microsoft had about 120,000 employees at the end of March.

The latest round of layoffs come a year after Microsoft said it would let go of 18,000 employees, and less than two weeks after the company announced plans to exit the Web display advertising business. Since becoming CEO last year, Nadella has been acquiring mobile and cloud software makers, and cutting units not central to his strategy.

Last month, the 47-year-old executive made his biggest overhaul since taking over, revamping his leadership team to reflect a focus on three areas: personal computing, cloud platforms and productivity and business processes. As part of that announcement, Stephen Elop, the former CEO of the Nokia handset business that Microsoft bought for 5.44 billion euros ($6 billion) last year, would step down.

Microsoft has gained less than 1 percent since its last major round of job cuts a year ago. The shares are down 4.6 percent this year. In early U.S. trading, they slipped less than 1 percent to $44.04.

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