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Xbox's Matt Booty announced 268 more job cuts and a reshuffle of its game studios in a memo titled "Continuing the reset."
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News18•23-09-2026, 10:26
Xbox Cuts 268 More Jobs in Fresh Restructuring Round
  • •Xbox confirms 268 additional job cuts, impacting Halo Studios, other first-party studios, and management functions, as part of an ongoing restructuring.
  • •This new round of layoffs follows 1,600 job cuts in July and contributes to the 3,200 roles Microsoft plans to eliminate across Xbox by June 2027.
  • •Chief Content Officer Matt Booty stated the company is "roughly three-quarters of the way through" its restructuring, which includes studio divestitures.
  • •The layoffs are tied to a broader reorganization aimed at strengthening franchises by consolidating business units and aligning closely working groups.
  • •Activision will now oversee Rare and World's Edge, and develop the next Halo title, while Obsidian merges with Bethesda, and King takes charge of Microsoft Casual Games.

Key Questions Answered

Microsoft cut 268 more roles in this fresh round of Xbox job cuts. This adds to the 1,600 job cuts announced in July and the roughly 3,200 roles Microsoft planned to eliminate across Xbox during its 2027 financial year.

The affected roles span Halo Studios, other first-party studios, and management layers. As part of the studio reorganisation, Activision will oversee Rare and World's Edge and build a new team for the next Halo title, while Obsidian is being folded into Bethesda and King will oversee Microsoft Casual Games.

Xbox chief content officer Matt Booty confirmed a town hall meeting for October 6, where the team will reflect on their progress and discuss future game lineups.