Xbox Layoffs: Know How Many Individuals Were Affected, Which Positions
Microsoft’s Xbox division has announced 268 additional job cuts as part of its ongoing restructuring, following around 1,600 layoffs earlier this year. The changes affect Halo Studios, first-party development teams and central functions. Xbox is also consolidating studios and reporting structures, while some teams.
Microsoft's Xbox division has announced an additional reduction of 268 jobs across its gaming business, marking a significant continuation of the corporate restructuring initiative introduced earlier this year. The latest downsizing impacts team members across Halo Studios, various first-party development teams, and core management and central publishing functions.
As per a report by Mint, these measures follow a substantial wave of 1,600 job cuts executed across the division. Xbox Chief Operating Officer Matt Booty communicated to employees that the latest actions bring the broader organizational overhaul approximately three-quarters of the way toward its total completion target. Oracle Layoffs: Leaked Doc Reveals 546 America Cloud Layoffs; Middle Managers and Workers Above 40 Heavily Affected
Xbox Gaming Studios Reorganisation Strategy
Alongside the workforce reduction, Xbox is consolidating several internal development houses and shifting reporting structures to streamline publishing capabilities. Under the updated framework, Activision will take over management of World's Edge and Rare, while also overseeing development of the next installment in the Halo franchise through a dedicated team separate from Call of Duty operations. Meanwhile, a smaller core team at Halo Studios will maintain support for existing community titles.
Bethesda is expanding its operational remit to incorporate Obsidian, which will continue ongoing projects such as Grounded alongside a newly coordinated Fallout game. Additionally, King will assume responsibility for Microsoft Casual Games, and Playground Games will combine with Turn 10 to form a unified unit centered on the Forza and Fable franchises.
Studio Divestitures and Future Outlook
The comprehensive restructuring also involves divesting specific studios back to independent operations. Compulsion Games, Double Fine Productions, and Undead Labs have successfully transitioned back to independent management alongside their back catalogues and intellectual properties. Oracle Layoffs: CFO Hilary Maxson Has This to Say About 2nd Round of Job Cuts.
Conversely, consultation processes remain active for other teams as leadership attempts to navigate complex market pressures and declining operating margins. Executive management intends to address workforce concerns directly during an upcoming all-division town hall meeting scheduled for early October.
(The above story first appeared on LatestLY on Sep 23, 2026 03:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
