Microsoft's Xbox division eliminates 3,200 jobs and divests four game studios as CEO Asha Sharma calls for a reset amid unsustainable operating margins.

Microsoft has announced it is cutting 4,800 jobs, including many in its Xbox division. This represents about 2.1% of its global workforce.

Xbox will cut about 3,200 jobs and offload five studios, including the UK’s Ninja Theory and France’s Arkane, in its biggest-ever restructure.

"Our business today is not healthy," Xbox CEO Asha Sharma warned in a memo to staff Monday.

Microsoft eliminated approximately 2.1% of its global workforce