Halo Studios Reduced to Roughly 20 Staff After Microsoft Layoffs, Sources Claim

Microsoft's September restructuring has left Halo Studios with a skeleton crew as development of future titles moves to Activision, according to pro player reports.

Halo Studios logo with Microsoft Xbox branding
Image source: Insider Gaming

Halo Studios has been severely reduced following Microsoft's latest round of layoffs tied to Xbox restructuring, with claims suggesting as few as 20 employees remain at the studio.

The franchise faced major upheaval on September 22 when Microsoft announced that development of future Halo titles would move to Activision. While Halo Studios will continue in some capacity, the handoff has left the original studio with what sources describe as an extremely small workforce.

Pro player aPureGangster, cited by Technical Halo, claimed the 20-person figure came "from a very, very reputable source." Though these numbers cannot be verified independently, they align with public statements from Microsoft and reporting from Windows Central's Jez Corden, who stated that Halo Studios is "looking at major layoffs in the 100s."

Many departing staff have announced their exits on LinkedIn, including a director who was promoted and then laid off the following day. Some have worked on the franchise for decades, dating back to its peak years.

Recent Halo titles have struggled to match the critical and player reception of earlier entries. Halo: Campaign Evolved, which brought Master Chief to PlayStation for the first time earlier this year, and 2021's Halo Infinite both underperformed compared to legacy entries in the series.

With Halo now under Activision's stewardship, precise details about the studio's future remain unclear. The timeline for the next major Halo project is unknown.

Further reading

Sources

  1. Insider GamingEstablished publication · recorded Sep 23, 2026
    Only 20 Halo Studios Remain After Layoffs, It’s Claimed
  2. PlayStation UniverseSecondary publication · recorded Sep 23, 2026
    Rumour — Halo Studios Only Has 20 Staff Remaining Following Latest Xbox Cuts