Microsoft confirmed this Tuesday (22) the cut of 268 jobs in the Xbox division and a broad reorganization of its studios. The move affects Halo Studios, other first-party teams and management areas and central functions of Xbox Game Studios, in a new phase of the restructuring started in July.
The decision had been anticipated by The Information, which reported that hundreds of employees would be laid off and that several studios would be consolidated. Hours later, Microsoft detailed the changes internally.
The new cuts are part of the plan announced in July to eliminate approximately 3,200 positions over the 2027 fiscal year. In the first phase, 1,600 jobs were cut. According to Matt Booty, Xbox's director of content, the reductions and divestments made since then represent about three quarters of the planned restructuring.
Activision takes over next Halo in studio reorganization
Microsoft also redistributed some of its main teams. The Activision will oversee Rare and World’s Edge and will be responsible for developing the next major title in Halo, through a team created specifically for the project and separate from the operations of Call of Duty. Halo Studios will keep a smaller team for the games currently on the market.
The Bethesda will oversee Obsidian, which will continue its current projects and work on a new Fallout in collaboration with Bethesda Game Studios. King will absorb Microsoft Casual Games, while Playground Games and Turn 10 will be brought together into a single structure, focused on the franchises Forza and Fable.
The reorganization reduces the number of independent units within Xbox and concentrates more franchises under Activision, Bethesda and King. Microsoft said in July that it intends to simplify the division's structure after acknowledging that the business operated with lower margins than comparable companies in the industry.
