Microsoft shuts down Halo Studios, laying off hundreds as franchise moves to Activision

Microsoft has effectively shut down Halo Studios, laying off hundreds of employees as part of sweeping Xbox reorganisation. The studio, which has developed or overseen every Halo game since 2010, is being reduced to a skeleton crew while major franchise development moves to Activision.

Josh Daniels, a cinematic director at Halo Studios, described the abruptness of the cuts on LinkedIn: "Promoted and laid off in the same week is pretty wild. I'm one of the many hit by the Halo Studios layoffs." The layoffs were part of yesterday's broader Xbox cuts that affected 268 people across Halo Studios, other unnamed first-party studios, and Xbox Game Studios management.

Bonnie Ross, former head of Halo and founder of 343 Industries (which rebranded as Halo Studios two years ago), wrote: "It was difficult to wake up to the news that the Halo Studio is essentially being shut down today, with only a small number of roles remaining." She described those affected as "incredibly talented team members" including creatives, designers, engineers, producers, artists, narrative and audio specialists, and community leaders.

Kiki Wolfkill, who led 343 Studios for several years, said she was "gutted to hear the news today" and offered support to those impacted. "Sending love and support to everyone impacted by the layoffs at Halo Studios and across Xbox," she wrote on LinkedIn.

Microsoft has created a purpose-built team at Activision, separate from Call of Duty, to develop the next Halo title. The restructuring also affects other studios including the apparent closure of Ninja Theory, relocation of Rare, World's Edge and Halo under Activision control, and the merging of Playground Games and Turn 10. Undead Labs and World's Edge have also suffered major layoffs as a result.