Microsoft said on Monday it would cut 4,800 jobs, or about 2.1 per cent of its global workforce, including overhauling its Xbox gaming business and divesting up to five studios as it looks to boost returns after years of heavy investment in the division.

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.

Microsoft announced plans to lay off 4,800 employees on Monday, confirming Business Insider's earlier report.

"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