Xbox is continuing its “reset” with an additional round of 268 job cuts across its gaming division, according to an internal memo sent to employees. The layoffs affect Halo Studios, other first-party teams, and the management and central functions layer of Xbox Game Studios. Xbox says the new changes are part of a broader restructuring it outlined earlier this year.
Outlets also report that Xbox is nearing completion of the July-announced restructuring plan, which described large overall headcount reductions through fiscal year 2027. Several outlets note that the restructuring is accompanied by studio mergers and consolidation of responsibilities among major partners within the Xbox ecosystem.
A central development across reports is the future of the Halo franchise: Xbox is shifting development of the next mainline Halo game from Halo Studios to an Activision team, while leaving Halo Studios with a smaller role focused on supporting existing Halo content. Multiple outlets also say Ninja Theory’s sale talks have failed and that the studio may be closed, while Arkane’s situation remains under consultation. The reports differ mainly in emphasis—some focus on the layoffs and “reset,” while others highlight the Halo handoff and potential closures—while largely agreeing on the core actions and figures.
