Microsoft has a June fiscal year, so its third quarter ends in March.
The software giant is also taking a $1.2 billion charge.
Microsoft said it will continue to hire in key strategic areas.

Associated Press
And its still awaiting approval from regulators to close its $70 billion purchase of Activision-Blizzard.
First, we will align our cost structure with our revenue and where we see customer demand.
This represents less than 5 percent of our total employee base, with some notifications happening today.

We know this is a challenging time for each person impacted.
And third, we will treat our people with dignity and respect, and act transparently.
These decisions are difficult, but necessary.
They are especially difficult because they impact people and peoples lives our colleagues and friends.
We are committed to ensuring all those whose roles are eliminated have our full support during these transitions.
Benefits for employees outside the U.S. will align with the employment laws in each country.
As a company, our success must be aligned to the worlds success.