Archive · 23 Sep 2026
Microsoft cuts 268 Xbox jobs in continuing restructuring wave
Microsoft is removing 268 jobs from its Xbox business.
The affected workers include people at Halo Studios, other game studios and central management.
The company says the changes are part of a multi-year plan to reset Xbox.
This follows 1,600 layoffs announced in July.
Microsoft is aiming for 3,200 total reductions.
Xbox executive Matt Booty called the day difficult for the workers leaving and their teams.
Future Halo development will receive support from Activision.
Halo Studios will mainly work on existing games and community support.
Microsoft eliminated 268 roles across Halo Studios, first-party studios and central Xbox management.
The layoffs are part of a multi-year “Xbox reset” led under CEO Asha Sharma.
The cuts follow a larger reduction of 1,600 jobs announced in July.
The latest reductions move Microsoft closer to a target of 3,200 total Xbox cuts.
Future Halo development is being handled with Activision support as Halo Studios focuses on existing games and community support.
- Who
- Microsoft’s Xbox division, led under CEO Asha Sharma, and affected employees at Halo Studios, other first-party studios and central management.
- What
- Microsoft eliminated 268 Xbox roles in another restructuring round.
- When
- The latest cuts follow a larger 1,600-person layoff announced in July; no exact date for this round is provided.
- Where
- Across Microsoft’s Xbox division, including Halo Studios, first-party studios and central management.
- Why
- The layoffs are part of a multi-year “Xbox reset” and a plan targeting 3,200 total reductions.
- Latest layoffs
- 268 Xbox roles eliminated
- Previous layoffs
- 1,600 jobs cut in July
- Overall target
- 3,200 total reductions
- Affected areas
- Halo Studios, first-party studios and central management
- Halo development
- Future development reallocated with Activision support
- Halo Studios focus
- Existing games and community support
- Xbox COO response
- Matt Booty called the layoffs a difficult day for departing colleagues and their teams