Microsoft Xbox Layoffs: 268 Employees Lose Jobs as Gaming Business Restructures

Microsoft has cut 268 jobs across its Xbox gaming division as the company continues to reorganise its gaming business and change responsibilities across several of its studios.

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The latest cuts add to a wider workforce reduction already announced by the company.

Changes Across Xbox Studios

The latest job cuts affect employees across Halo Studios, other first-party studios, and Xbox Game Studios’ management and central functions. The restructuring also brings changes to how some of Microsoft’s major gaming franchises and studios are managed.

Activision will take responsibility for developing the next Halo game through a new team. Halo Studios will retain a smaller team that will continue supporting existing Halo games and the wider Halo community.

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Activision will also oversee Rare and World’s Edge under the new structure. Bethesda will take responsibility for Obsidian Entertainment. Obsidian will continue working on its existing projects, including Grounded and a new Fallout project.

Microsoft has also changed the structure of some other studios. Compulsion Games and Double Fine have returned to independent management, while Undead Labs has completed a similar transition.

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These changes are being made alongside the workforce reductions and are intended to simplify responsibilities across the gaming organisation.

Wider Xbox Workforce Reduction

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The 268 latest job cuts follow Microsoft’s previously announced plan to reduce around 3,200 positions within its Xbox business.

The company has been carrying out the restructuring in stages as it reviews its gaming operations, studio structure and workforce requirements.

The company is also reviewing the future of Ninja Theory. Two proposed agreements to sell the studio have not been completed.

Microsoft has started consultations with employees regarding a proposed closure. However, a final decision to close the studio has not been confirmed.

Discussions concerning Arkane are also continuing.

The latest changes show that Microsoft’s Xbox restructuring involves more than workforce reductions.

The company is also changing reporting responsibilities, moving some studios under different parts of its gaming organisation and changing how major franchises are developed.

For employees, the restructuring has resulted in job losses across multiple areas of the gaming business.

For Microsoft, the changes represent another step in its ongoing effort to reorganise Xbox and its collection of gaming studios while continuing development of major franchises and existing titles.