Updates to this story
4,000 staff will lose their jobs entirely at the world's largest, but troubled phone manufacturer. Most of the jobs will be lost in Finland, Denmark and the UK. Meanwhile, another 3,000 will be shipped off to Accenture - all of the Symbian software teams.
The idea, according to Nokia's official statement, is that the outsourced Symbian team will continue to provide mobility software services to Nokia for its future smartphones. Accenture already owns Nokia's professional services unit for engineering.
Shares have been boosted slightly, as the huge lay-offs means Nokia plans to cut its research and development costs by 18 percent by 2013, says Reuters.
Our source at Nokia said, when we learned of the job cuts: "This isn't a deal between Nokia and Microsoft, this is a Microsoft take over."
Microsoft man Stephen Elop, currently CEO at Nokia, is suspected by some to be a stalking horse for Redmond.