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Microsoft Axes 268 Xbox Jobs in Gaming Division Restructuring

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Microsoft has announced it is cutting 268 positions across its gaming division as part of its restructuring efforts. The cuts will affect Halo Studios, other first-party developers, and Xbox Game Studios management.

The move is the latest phase in an operational overhaul that began over the summer. Xbox leadership is shifting towards centralized development under larger business units, prioritizing predictable production schedules and coordination across major franchises.

Activision will oversee Rare and World's Edge while assembling a dedicated unit to develop the next Halo installment. Halo Studios will remain responsible for community engagement and support for existing Halo games.

The restructuring also includes plans to merge Playground Games and Turn 10 into one racing studio, and absorb Obsidian Entertainment under Bethesda.

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