On September 22, 2026, Microsoft announced the elimination of 268 roles across its Xbox Game Studios division.
Impact on Halo Studios and Developers
The layoffs primarily affect Halo Studios, various first-party developers, and central management layers. Xbox Chief Content Officer Matt Booty confirmed the changes in an internal memo, noting that the company is now roughly 75 percent through a broader restructuring plan.
Broader Restructuring Goals
This initiative, originally detailed in July 2026 by Xbox CEO Asha Sharma, aims to reduce the gaming division workforce by approximately 3,200 roles by the end of the 2027 fiscal year.
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