Updates to this story
TechEye has heard that Nokia is going to fire up to 6,000 people as soon as next week.
An industry source tells us the lay-offs will mainly be in Nokia's home country, Finland.
Laying off people in Finland is a costly business and considering the numbers it is not a move to be taken lightly. Cynics suggested when Stephen Elop took over that he was a Microsoft plant - could they be right? And what would the political implications be? We have heard that the plans come from the very top.
A senior figure at Nokia has reportedly said: "This isn't a deal between Nokia and Microsoft, this is a Microsoft take over."
At time of publication Nokia has not replied, though we're told our query is being investigated and will update when we receive any word.
Microsoft says it "doesn't comment on rumour or speculation".