Archive · 23 Sep 2026
Xbox Cuts 268 Jobs as Halo Shifts to Activision
Xbox, which belongs to Microsoft, is cutting 268 more jobs.
These cuts affect Halo Studios, other game studios, and Xbox management teams.
They are part of a larger plan that could affect about 3,200 roles by June 2027.
A new team inside Activision will make the next main Halo game.
This team will be separate from the people who make Call of Duty.
A smaller Halo Studios team will continue supporting existing Halo games and their players.
Xbox is also combining or moving several studios under different leaders.
Ninja Theory may close after two possible sales did not happen.
Xbox is still discussing what will happen to Arkane, although reports differ on whether those discussions will last through the end of 2026 or only through the end of this year.
Xbox is eliminating 268 roles across Halo Studios, other first-party studios, and central management functions.
The cuts follow about 1,600 layoffs announced in July within a restructuring affecting approximately 3,200 roles through fiscal 2027.
A new Activision team will develop the next mainline Halo game separately from Activision’s Call of Duty operations.
Xbox is consolidating studios, including moving Obsidian under Bethesda and merging Playground Games with Turn 10.
Ninja Theory faces a proposed closure after failed sale agreements, while consultations over Arkane’s future continue.
- Who
- Microsoft’s Xbox division, including Halo Studios, Activision, Bethesda, Ninja Theory, and Arkane.
- What
- Xbox is cutting 268 jobs and reorganizing studio responsibilities, including assigning the next mainline Halo game to a new Activision team.
- When
- The latest cuts were announced on September 23, 2026; an employee town hall is scheduled for October 6, and the broader restructuring extends through fiscal 2027.
- Where
- Across Xbox’s global gaming organization, its first-party studios, and central management functions.
- Why
- Xbox says the reset is intended to reduce business units, bring closely connected teams together, and concentrate publishing capabilities.
Xbox’s Restructuring Rationale
Workforce and Studio Concerns
Purpose of the changes
Xbox’s Restructuring Rationale
Xbox says the reset will simplify its organization, combine teams that already work closely, and focus resources on major franchises and publishing.
Workforce and Studio Concerns
The restructuring eliminates jobs, changes reporting lines, and creates uncertainty for employees and studios facing closure or possible divestiture.
Future of Halo
Xbox’s Restructuring Rationale
Xbox is assigning the next mainline Halo game to a purpose-built Activision team while retaining a smaller Halo Studios group for existing games and community support.
Workforce and Studio Concerns
Halo Studios will no longer lead development of the franchise’s next mainline installment, transferring that responsibility to another Xbox-owned organization.
Arkane consultations
Xbox’s Restructuring Rationale
Xbox says consultations over Arkane’s future are continuing as part of the wider restructuring process.
Workforce and Studio Concerns
Reports differ on the expected timeline, with one account saying discussions may continue through the end of 2026 and another saying they may end this year.
- Latest job cuts
- 268 roles
- July layoffs
- Approximately 1,600 Xbox roles
- Overall restructuring
- Approximately 3,200 roles through fiscal 2027
- Fiscal-year end
- June 2027
- Restructuring progress
- Xbox says the process is roughly three-quarters complete
- Next mainline Halo game
- To be developed by a new Activision team separate from Call of Duty operations
- Employee town hall
- Scheduled for October 6
- Studio uncertainty
- Ninja Theory faces a proposed closure; Arkane consultations remain ongoing
