Microsoft Cuts 268 Xbox Jobs, Moves Halo to Activision

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Microsoft is cutting 268 Xbox jobs and moving development of the next Halo game to a dedicated Activision unit as part of its gaming restructuring. Image: Jonathan Kemper/Unsplash

Microsoft cuts 268 Xbox jobs and shifts Halo development to Activision as its gaming overhaul reshapes studios, Game Pass, and future releases.

Sep 24, 2026

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Microsoft confirmed Tuesday it is cutting 268 positions across its gaming division while handing future development of its hallmark Halo franchise to Activision.

The moves mark the latest phase of an operational overhaul that Xbox leadership began over the summer as Microsoft restructures its gaming business. Xbox Chief Content Officer Matt Booty outlined the cuts in an internal staff memo titled “Continuing Our Reset,” later...

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