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September 28, 2026

Microsoft Announces Xbox Studio Restructuring

Microsoft cuts 268 roles across Xbox Game Studios in a broad restructuring. Learn how the changes impact Halo Studios and future gaming hardware strategy.

1 min read

On September 22, 2026, Microsoft announced the elimination of 268 roles across its Xbox Game Studios division as part of its ongoing alignment in the gaming sector.

Impact on Halo Studios and First-Party Developers

The latest workforce reductions primarily affect Halo Studios, several first-party development teams, and central management layers. Xbox Chief Content Officer Matt Booty confirmed the organizational changes in an internal staff memo, noting that the enterprise is now approximately 75 percent through its comprehensive restructuring framework.

Broader Restructuring Targets for Gaming

This multi-phase initiative, originally outlined in July 2026 by Xbox CEO Asha Sharma, aims to streamline organizational efficiency and reduce the gaming division's overall workforce by approximately 3,200 roles by the end of fiscal year 2027.

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