Microsoft is laying off 268 Xbox employees and transferring major franchises including Halo to Activision as part of a major gaming restructure. The moves continue a broader consolidation that has already impacted over 1,600 roles.
Microsoft's Xbox division is undergoing significant changes with 268 job cuts announced today across Halo Studios and other first-party teams. The layoffs are part of an ongoing "reset" of the gaming business that Xbox CEO Asha Sharma previously called "the most significant restructure in Xbox history."
The cuts add to 1,600 Xbox employees affected by layoffs in July 2025. Combined with today's reduction, roughly 3,200 roles will be impacted by the end of Microsoft's 2027 financial year in June 2027.
Franchise Transfers
Activision, the Call of Duty maker owned by Microsoft, is taking control of Halo, Sea of Thieves, and Age of Empires. Halo Studios will continue supporting existing titles but faces significant staffing reductions from today's cuts.
Studio Closures
Ninja Theory is likely closing as part of the restructure. The studio, acquired by Microsoft in 2018, has been impacted by the ongoing consolidation efforts.
Context
The Xbox restructure reflects Microsoft's shift toward consolidating its gaming operations under fewer umbrellas. By moving major franchises to Activision—already a powerhouse within Microsoft Gaming—the company is reducing operational overhead and centralizing development.
The changes mark a significant departure from Xbox's previous strategy of building a diverse portfolio of first-party studios. Previous attempts to sell Ninja Theory fell through over the summer, leading to the likely closure announcement today.
Xbox has faced mounting pressure to demonstrate profitability and justify its substantial investments in gaming. These moves suggest a focus on fewer, larger franchises backed by established development teams rather than maintaining a broad network of studios.
Microsoft is restructuring Xbox's internal organization, transferring the Halo franchise to Activision while consolidating development studios under Bethesda's banner.
Amazon's Leo satellite internet service is expanding into Uzbekistan through a partnership with a local internet service provider. The deployment aims to connect remote regions lacking reliable broadband access.
TikTok's U.S. arm has joined Lantern, a cross-platform initiative focused on child safety. The move comes eight months after TikTok established its U.S.-based joint venture.
Microsoft is consolidating Xbox studios and eliminating 268 roles at Halo Studios as part of broader layoffs affecting 3,200 workers. The moves signal major structural changes for the gaming division, including plans to relocate its most iconic franchise.