Xbox CEO Asha Sharma calls it the most significant restructuring in Xbox history: 3,200 job cuts, four studio spinoffs, a new COO, and a flattened management structure — all aimed at turning around a division she says has been losing 64 cents on every dollar invested in its studios.

The gaming division was hit the hardest, with 1,600 roles eliminated today and 3,200 more to be impacted throughout the next year. Last month, there were murmurs that “major job cuts” were coming for Xbox.