Xbox Restructuring Continues With More Changes Ahead, Says Matt Booty

Xbox is continuing its largest internal restructuring in company history, with more changes still to come. In a September 22 memo, Matt Booty revealed that recent actions have brought the company roughly three-quarters of the way through its previously announced restructuring plan.

September's restructuring wave impacted 268 employees. The month also saw significant studio reorganizations: Rare moved under Activision, Obsidian Entertainment moved to Bethesda, and Halo Studios moved to Activision for future Halo development. A near-complete deal with Ninja Theory fell through, leading to the studio's closure.

The restructuring builds on earlier announcements. In July, Xbox CEO Asha Sharma described the overhaul as "the most significant restructure in XBOX history," with planned job losses affecting over 3,200 people. That memo outlined a major corporate shake-up affecting multiple development teams.

More changes remain ahead. Booty's memo indicated that additional effects from the restructuring will continue "throughout FY27." These could include further layoffs, additional studio consolidations, or other organizational changes, though specific timing remains unclear.

Xbox has not detailed what the remaining quarter of restructuring will entail or when employees and studios should expect additional announcements.