More Xbox layoffs imminent as Activision takes control of Halo claim reports

X marks the layoffs (Microsoft) Xbox plans to combine several studios as part of another wave of layoffs, according to reports, as Halo looks set to move to Activision Blizzard. Microsoft’s ‘reset’ of Xbox started in July this year with 1,600 employees being laid off, but a further 1,600 people are set to lose their jobs before the end of the financial year. As such, we knew more layoffs were coming before the end of next June, but it seems some of them are now imminent. According to The Information, Xbox is planning to lay off ‘hundreds’ of employees this week, citing a source briefed on the plans. It’s claimed the company will also ‘consolidate several of its game studios’, but it doesn’t specify which teams will be affected. Reliable insider NateTheHate has claimed on ResetEra that Xbox will be ‘consolidation in the form of reorganisation’, stating that Halo Studios will be moved under Activision Blizzard as part of the shift. Additionally, they claim ‘other studios will move to different companies within Xbox/Microsoft’. It seems like an update regarding the Halo franchise could arrive very shortly, with Windows Central editor Jez Corden telling X users to ‘stay tuned’ when asked about when we could see information regarding the franchise’s next steps. Expert, exclusive gaming analysis Sign up to the GameCentral newsletter for a unique take on the week in gaming, alongside the latest reviews and more. Delivered to your inbox every Saturday morning. It’s unclear who else will be impacted but after Blizzard went relatively unscathed in the first wave, there’s an expectation that they could be in the firing line – something Bloomberg’s Jason Schreier has also stated. The gaming giant recently announced it was working on a new StarCraft shooter and Diablo 5. There have been thousands of job cuts at Xbox over the past few years. In January 2024, Xbox cut 1,900 employees. Later in the same year, they closed several game studios, namely Tango Gameworks (who were later saved by Krafton), Arkane Austin, and Alpha Dog Games, before cutting 650 more employees in September. In 2025, Microsoft cut around 9,000 people, with just less than half reportedly affecting its Xbox division. Around the same time, Xbox shut down Perfect Dark studio The Initiative, Rare’s Everwild, and several other projects. When you throw in the 1,600 layoffs from July this year, Xbox is estimated to have laid off around 8,000 people within the past three years. By the end of this financial year, after the second lot of 1,600 layoffs, it will be close to 10,000. However, it could be more, as this is based on estimates regarding the 9,000 cuts across Microsoft as a whole in 2025. It’s a shocking reflection of Xbox’s poor management over the Xbox Series X/S generation, and while Microsoft wants to make you think these errors are in the past, these layoffs are taking place just after Xbox decided to save Hideo Kojima’s Physint following its cancellation at PlayStation – a move which felt more motivated by the need for a quick PR win rather than because it’s a sound investment. It remains to be seen how these layoffs will shake-up Xbox as a business, but it seems likely Microsoft will try and take some of the heat off themselves by announcing new Halo games. Which seems unlikely to work considering how indifferently the recent remake of the first game was received. Halo could be about to move under Activision (Xbox Game Studios) Email gamecentral@metro.co.uk, leave a comment below, follow us on Twitter. To submit Inbox letters and Reader’s Features more easily, without the need to send an email, just use our Submit Stuff page here. For more stories like this, check our Gaming page. Arrow MORE: Graveyard Keeper 2 PS5 review – Stardew Valley with zombies Arrow MORE: ZX Spectrum and Manic Miner legend Matthew Smith to get video game box set Arrow MORE: Bizarre EA Sports FC 27 bug is putting players in bikinis GameCentral Sign up for exclusive analysis, latest releases, and bonus community content.