The technology company also said it would take a restructuring charge of $750 million to $850 million.
"We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first- party device family," CEO Satya Nadella wrote in an email to employees. "In the near-term, we'll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility."
The job cuts are in addition to the 18,000 positions Microsoft said it planned to cut a year ago.
Shares hovered around the flatline in early morning trading.