The announcement comes after the disappearance of flight MH370 in March and the shooting down of flight MH17 over Ukraine.
The jobs figure is about a third of its workforce.
The MH370 Boeing 777 plane disappeared on March 8 as it travelled from Kuala Lumpur to Beijing with 239 people aboard.
Another Boeing 777 carrying 298 people, including Newcastle United fans Liam Sweeney and John Alder, is believed to have been shot down by a missile fired by pro-Russian separatists last month.
Bosses say the job cuts are part of a major restructuring, which will see a new chief executive in place next year, as well as the carrier being completely taken over by the Malaysian government.
A spokesman said: "Today's announcement is all about rebuilding the airline after these two awful incidents.
"The airline is being re-shaped and the aim is to return it to profitability."