Microsoft cuts hundreds more jobs as next Halo game moves to Activision

Microsoft cuts around 600 jobs as Xbox moves next Halo game to Activision amid restructuring

Microsoft is cutting fewer than 600 jobs globally as part of its ongoing restructuring, including 268 positions across Xbox Game Studios. The changes also include moving development of the next Halo game to Activision.

Around 300 of the latest job cuts are in Washington state, according to Microsoft. The Xbox reductions affect Halo Studios, other first-party studios, as well as management and operating teams.

The latest cuts follow Microsoft’s announcement in July that Xbox would eliminate around 3,200 roles by the end of its fiscal year. The company said the Xbox restructuring is now about 75% complete.

“The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise,” Xbox chief content officer Matt Booty wrote in a memo to employees.

As part of the restructuring, the next Halo game will move to Activision, which Microsoft acquired in 2023.

A new team separate from Call of Duty will lead development, while a smaller team at Halo Studios will continue supporting existing Halo games, the community and esports.

Activision president Rob Kostich said the company has “already begun assembling a purpose-built team, unique in capability and talent.”

He added that the aim is to “make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place.”

Activision will also take control of World’s Edge, the studio behind Age of Empires, and Rare, which develops Sea of Thieves.

Obsidian Entertainment will move under Bethesda, while Microsoft Casual Games will move under King. Turn 10 Studios and Playground Games will merge into a single studio handling Forza and Fable.

Undead Labs, meanwhile, has been spun off, with State of Decay 3 still set to launch on Game Pass on day one under a new publisher.

Ninja Theory could close after two potential handoff agreements fell through, while Arkane in France remains without an announced outcome.