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Sep 22, 2026

Microsoft announces Xbox restructuring with 268 layoffs and studio consolidation

Microsoft's Xbox unit is laying off 268 employees and consolidating several studios under Activision, including moving the Halo franchise to Activision oversight. The changes represent a major reorganization of Xbox's game development structure.

Sep 22, 2026·3 sources

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Top claims

▪Microsoft's September 22, 2026 restructuring brings the company roughly three-quarters of the way through its previously announced plan to eliminate approximately 3,200 Xbox roles during the 2027 fiscal year
▪Microsoft's aggressive Xbox downsizing is necessary for its financial health
▪Microsoft laid off approximately 500 employees on September 22, 2026, including 268 gaming roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions layer, alongside roles in cloud and artificial intelligence

Subtopics

Corporate restructuring1 Microsoft1

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