Some 1,350 jobs are to go in Finland after Microsoft announced it is closing down production in the city. Worldwide an additional 500 jobs will be cut.
Microsoft's mobile unit had been part of Nokia’s mobile phone business but was sold to Microsoft along with that devices business for 5.5 billion euros in 2014.
Microsoft has struggled to make the unit profitable, with the firm’s flagship Lumia smartphones’ market share still falling, and had shut down some operations in Finland last year with the closure of the Salo site.
Nokia recently announced a return to consumer electronics, with the company selling an Android phone to go alongside its N1 tablet and wearables from the French wellness technology firm Withings, which was recently acquired by Nokia.