Xbox announced additional workforce reductions and organizational changes as part of its ongoing restructuring initiative. The latest cuts of 268 jobs include staff at the studio responsible for the Halo franchise, with development of future Halo titles now transferring to Activision, the publisher behind Call of Duty. The move represents a significant shift for the long-running military science fiction series that has served as a core franchise for Xbox since the console’s launch in 2001.
Matt Booty, chief content officer at Xbox, detailed additional challenges facing the division in a recent blog post. Ninja Theory, the Cambridge-based developer known for the Bafta-winning Hellblade series, will enter employee consultation regarding a proposed closure after efforts to locate a buyer failed. Two separate acquisition agreements fell through, though potential buyout discussions remain ongoing. Three of four other studios previously identified for spinoff have returned to Xbox management, while consultation for Arcane continues.
These announcements represent the latest phase of what Xbox leadership has characterized as the most significant restructure in the division’s history. In July, the company eliminated 1,600 positions immediately, with 3,600 total job losses planned. Xbox executives cited multiple factors including the need to improve financial health, insufficient growth in subscription services like Game Pass, and external pressures from rising computing and hardware costs. The company indicated it is approximately three-quarters complete with its restructuring plan.
Activision’s expanded role will extend beyond Halo to include management of World’s Edge, developer of the Age of Empires franchise, as well as Rare and its Sea of Thieves series. Additionally, Xbox confirmed internal consolidations, with Bethesda expanding to oversee Obsidian Entertainment, and combining the studios responsible for Forza Horizon and Fable. Industry observers noted the significance of transferring Halo development, with one analyst questioning whether the change could help revive what was once considered Xbox’s flagship property.
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