Microsoft deepens Xbox restructuring with 500 new job cuts

The cuts represent the next phase of a plan to trim 20% of the Xbox workforce by the end of the fiscal year. Matt Booty, head of Xbox Game Studios, confirmed in an internal memo that the company is now roughly three-quarters of the way through its announced restructuring. The latest move includes the elimination of 268 positions specifically within Halo Studios, central management, and other first-party teams.

Beyond the headcount reduction, Microsoft is fundamentally altering its studio architecture. Activision is expanding its reach to oversee Rare and World’s Edge, while also taking charge of the next Halo title. Other changes include merging Playground and Turn 10 to focus on the Forza and Fable franchises, and consolidating King’s operations with Microsoft Casual Games. Regarding divestitures, Undead Labs has successfully moved to a new publisher, but agreements for Ninja Theory have collapsed, leading the company to consult with staff on a potential closure. Arkane’s status remains under review through the end of the year.