Microsoft’s Xbox Unit To Slash Hundreds Of Jobs In Latest Studio Shakeup

Microsoft’s Xbox gaming division is the midst of a big reset as outlined earlier this year when the company laid off hundreds of employees and shed several smaller studios. The next phase of this shakeup is now in motion and will see more layoffs alongside shifts in how its studios operate, which could mean the demise of one the Xbox’s most iconic franchises.

In a letter to Xbox employees, chief content officer Matt Booty shared that the company is “eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer.” Unfortunately, those who were spared in this round of layoffs will likely be on pins and needles as Booty emphasizes that this reset is only “three-quarters of the way through.”


The layoffs are only part of the changes being implemented, as several of its studios will also be reorganized. Activision will now oversee World’s Edge, Rare, and the newly gutted Halo Studios. Meanwhile, Bethesda is absorbing Obsidian as it works towards a new Fallout entry. Moreover, Microsoft Casual Games is being folded into King, while Playground and Turn 10 are combining forces to work on Forza and Fable.

The most consequential move is handing Halo Studios to Activision, which is best known for shepherding the Call of Duty series. It means that the next Halo will likely feel and play differently than what fans are accustomed to, with a good chance that some of that CoD DNA makes its way into the experience.

Of course, that’s assuming we get a new Halo title, because while the franchise is a key part of Xbox history it doesn’t have the sway that it used to. So there’s the real possibility that Master Chief quietly exits with the remake that came out earlier this year being his final fight against the Covenant.

Time will tell if this reset will get Xbox in a better position as it prepares to launch its next generation console, Project Helix.