Xbox cuts 268 jobs as Microsoft restructures studios
Microsoft has laid off 268 employees across Halo Studios and other teams as part of a major reorganization that reshuffles how its gaming divisions report and operate.
Xbox has disclosed 268 layoffs across Halo Studios and other teams as Microsoft continues restructuring its gaming operations.
The changes represent a significant reshuffling of the company's studio structure. Microsoft Casual Games will now report to King, while Halo development has moved to Activision. Rare and World's Edge will now operate under the publisher's remit.
The restructuring extends across multiple studios. Ninja Theory faces closure, Playground and Turn 10 will merge into a single studio, Undead Labs has become independent with its own subsequent job losses, and Obsidian has moved into the Bethesda fold.
The layoffs follow earlier rounds of job cuts at Microsoft's gaming division announced in February 2024, when the company eliminated around 1,900 positions across multiple studios after acquiring Activision Blizzard.
Sources
- PocketGamer.bizEstablished publication · recorded Sep 28, 2026Hot Five: Xbox layoffs, AppLovin's growing ad spend and Lilith Games' new hit