Xbox Layoffs Continue with 268 Job Cuts

Microsoft is continuing its restructuring efforts in the Xbox gaming division, cutting 268 jobs as part of an ongoing overhaul. The layoffs affect employees at Halo Studios and other first-party studios, as well as management and central functions within Xbox Game Studios.

The cuts follow a similar round of layoffs in July, which saw around 1,600 Xbox positions eliminated. According to internal memo from Xbox Chief Content Officer Matt Booty, the latest restructuring measures form part of a broader plan involving 3,200 roles during Microsoft's 2027 financial year.

Booty noted that roughly three-quarters of the previously announced process has been completed since July, with some studios being sold or spun off. The sale of Undead Labs is still moving forward, and consultations concerning Arkane and its upcoming title are continuing under French labour laws.