A significant amount of Microsoft employees may receive their pink slips later this week, on Thursday, as part of a concerted headcount reduction at the Redmond-based company.
According to long-time Microsoft specialist, Mary-Jo Foley, that new wave of redundancies will affect "almost every group at the company" with Nadella mentioning 18,000 job losses likely to happen by early 2015.
The company has just north of 125,000 full time employees and 12,500 former Nokia employees had already been sacked in July.
Microsoft is also likely to stop using the services of an undisclosed number of so-called contingent employees.
An altogether different company
These are non full-time staff that make up the hoards of testers and other engineers and up to a fifth of them are expected to lose their jobs. The next four weeks are going to be crucial for Microsoft.
Other than the rumoured job cuts tomorrow, the company is expected to unveil Windows 9 on 30th September as well as announcing its forecasts for the next financial year.
Two days ago, it announced the acquisition of Minecraft maker, Mojang, for $2.5 billion (£1.53 billion, AU$ 2.76 billion).