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Xbox Eliminates 268 Roles at Halo Studios and Other First-Party Teams

Technology — original topic illustration — illustrative image
Topic illustration — not a photograph of the reported event. Original LokiTV graphic.

NowWire · AI-assisted reporting summary · September 22, 2026 UTC

Xbox Restructuring and Layoffs

According to an official Xbox message reported on September 22, 2026, the company is eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. Matt reported that these actions bring the company roughly three-quarters of the way through its previously announced restructuring. [1]

Studio Divestitures and Closures

Xbox also provided updates on studio divestitures, noting that Undead Labs successfully transitioned with a new publisher and will release State of Decay 3 day one on Game Pass. However, two separate agreements for Ninja Theory fell through, prompting a proposed closure and employee consultation while alternative paths are explored. Consultations for Arkane are expected to continue through the end of the year, and an all-Xbox town hall is scheduled for October 6, 2026. [1]

Sources

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