This means that 2.1 percent of the workforce will disappear. The Xbox division will lose 3,200 positions, about a fifth of its staff, CNBC reports.
As early as Monday, 1,600 jobs will be cut in the division, while the remaining measures will be implemented next year.
"I am aware that a restructuring spanning a year brings additional challenges. Unfortunately, it is not possible to implement all the necessary changes in a single day," Asha Sharma, the division's head, wrote in an email to employees on Monday.
Microsoft's stock has fallen more than 20 percent in New York this year.
