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Microsoft plans to announce a major new round of layoffs as early as Wednesday, according to a report in the New York Times.

Citing unnamed sources, the newspaper said that the layoffs are due to shifts in the tech landscape and are in addition to the 18,000 employees that Microsoft said it planned to let go a year ago. Frank Shaw, a spokesman for Microsoft, declined to comment to the newspaper.

The cuts are expected to hit Microsoft’s hardware group and the struggling smartphone business that it acquired from Nokia last year in a $7.2 billion deal. Microsoft had more than 118,000 employees worldwide at the end of March.

Microsoft chief executive Satya Nadella, who became CEO in early 2014, sent an email to the whole company in late June, rallying employees but also warning that the company would have to make tough choices where things aren’t working. Last month, Microsoft sold its display ad business to AOL.

While all of this is happening, Microsoft is also preparing to launch Windows 10, the most important version of its operating system in years.

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