Microsoft is poised to cut down its workforce by 700 beginning next week, a source familiar with the issue told Business Insider.

The layoff is reportedly part of Microsoft's previous plan, which was announced during the company's annual report in June, to slash around 2,850 employees. Based on a Microsoft 10-K filing in July 2016, the company would be slashing off the positions during its fiscal 2017, which runs between July 1, 2016 and June 30, 2017, according to ZDNet. The insider noted that most of the scheduled layoffs have already been carried out.

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The cut will not be concentrated on one department alone but will be spread out to other areas including engineering, finance, human resources, to name a few. The figure, however, is unlikely to create an impact from the company's more than 113,000 current headcount.

The pending cuts would fall on the same week the firm reports quarterly earnings, of which the Seattle Times noted has been Microsoft's recent pattern of discreetly axing down several hundred near the end of a quarter.

The source, on the other hand, stressed that the layoff was not because of financial cuts but rather to update the skills of its workers. In fact, Microsoft is still looking to hire over 1,600 new talents, based on its post on LinkedIn.

Seattle Times also noted that the total will not include the 10,000 workers that Microsoft acquired from LinkedIn when it bought the social networking firm for $26 billion in December.

Laid-off workers are usually offered 60 days to secure a new position internally and given a two-week pay for every six months of employment, an employee said.

Since Microsoft Chief Executive Satya Nadella took office in 2014, the company oversaw the largest-ever layoffs, slashing nearly 18,000 jobs. Most of those who were affected were linked to the smartphone units acquired from Nokia.