Microsoft said it would cut about 2,850 more jobs over the next 12 months, taking its total planned job cuts to up to 4,700, or about 4 percent of its workforce.
The company said in May it would cut 1,850 jobs in its smartphone business, most of them in Finland.
Microsoft bought Finland-based handset maker Nokia in 2014 in an ill-fated attempt to take on market leaders Apple Inc and Samsung Electronics Co Ltd.
Chief Executive Satya Nadella, who took the helm just two months before the deal closed, has since focused on restructuring the struggling phone business.
Microsoft had about 114,000 full-time employees as of June 30.