In an effort to save the one-time industry leader, Xbox CEO Asha Sharma on Monday announced 3,200 layoffs and the divestiture of four studios.

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 around 4,800 employees on Monday. Of those, 1,600 come from Xbox layoffs and studio spinouts. More will follow.

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