Microsoft Just Laid Off 2,100 Employees

Microsoft handed out pink slips to 2,100 employees on Thursday, part of the 18,000-employee layoff it announced in July.

Here's what we know from sources close to the company:

Cuts are happening across the board in "many different teams, functions and countries," our source said. All employees are getting a severance package.

Many of today's cuts were in the Seattle area: 747 employees in the Puget Sound area were let go.

That means Microsoft still intends to cut another 2,900 or so employees over the coming months.

Microsoft will wrap up the majority of the layoff by December, it promised employees. It might make the final cuts throughout the fiscal year, which ends in June.

Most employees affected were let go last July, when Microsoft first announced these cuts. CEO Satya Nadella said the company cut 13,000 employees that day, mostly from Nokia. All told, 12,500 Nokia employees were dismissed. Another 5,500 will come from Microsoft.

Sources told us cuts were deep at Microsoft because the company was shedding Nokia's feature phone business. Nokia is now focused on smartphones and tablets.

In those first round of cuts, test engineers across the company were the hardest hit, sources told Business Insider. That's because CEO Satya Nadella is changing the organizational structure of how Microsoft builds products.

Testing will no longer be done by a totally dedicated team, but will be rolled into the developer team. Nadella believes this will reduce bureaucracy and let Microsoft deliver products faster.

Now, however, cuts are happening company wide.