, July 7 -- Microsoft is cutting 4,800 jobs, or about 2.1% of its global workforce, including around 1,600 positions in its Xbox gaming division, as the company restructures the business to improve its performance.

The company announced Monday that the Xbox layoffs are part of a broader reorganization aimed at "resetting" the gaming business as it faces growing competition.

"Our business today is not healthy," Xbox CEO Asha Sharma said in a memo to employees. Sharma, who took charge of the gaming division earlier this year, said Xbox's profit margins are three to 10 times lower than those of comparable gaming platforms and publishing businesses.

She said the gaming industry is also facing a major hardware crisis as the cost of console ...