Xbox Lays Off Hundreds Amid Restructuring Efforts

Xbox has been hit by another round of layoffs, affecting over 268 employees. Among them is Josh Daniels, a Halo Studios cinematic director who was promoted just days prior to his layoff.

Daniels has spent 11 years under the Xbox umbrella, contributing to games like Forza Motorsport and most recently, Halo: Campaign Evolved. His departure comes as part of Microsoft's ongoing restructuring efforts, which have seen over 3.2K Xbox employees cut in 2026 alone.

Xbox CEO Asha Sharma has outlined plans to reach more than one billion people each day, while operating with a reduced workforce and studio structure. Satya Nadella, CEO of Microsoft, feels 'fantastic' about the company's intellectual property (IP) and studio portfolio, but acknowledges the need for a sustainable business model.