Microsoft will cut 18,000 jobs over the next year, the firm has said.
The majority of those will be in the firm's Nokia division that it acquired in April. 12,500 jobs will be going from the mobile operation.
The move is part of a cost-cutting programme designed to save the firm £351m.
The total cost of the cuts will come to around £800m.
It is part of the firm's move to shift away from software, to focus on online services, apps and devices.
The business wants to have fewer layers of management in order to speed-up decision making.
No confirmation on the previously reported rumour that jobs will be cut from the Xbox sales and marketing division in the UK.