Microsoft Announces 268 More Layoffs Amid Xbox Restructuring
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Microsoft has confirmed an additional 268 layoffs at Xbox as part of ongoing restructuring efforts, following significant cuts earlier this year. Several studios will merge or close, and Obsidian will now operate under Bethesda's oversight.
Major Restructuring at Xbox
Microsoft has announced 268 more layoffs within its Xbox division as part of an extensive restructuring process. This follows a previous round of cuts in July, where 3,200 employees were laid off, marking what Xbox CEO Asha Sharma referred to as the company's most significant restructuring.
Changes to Studio Operations
The latest layoffs will impact Halo Studios and other unspecified first-party studios, alongside cuts to Xbox Game Studios' management and central functions. Additionally, there will be a reorganization of several studios:
- Rare and World's Edge are now under Activision's management.
- Playground Games and Turn 10 will collaborate on projects for Forza and Fable.
- Obsidian will continue its current projects, including Grounded, while also partnering with Bethesda Game Studios on a new Fallout title.
Future of Halo and Other Studios
Activision will take the lead on developing the next Halo game with a newly formed team separate from Call of Duty. A small remaining team at Halo Studios will continue to support existing Halo titles. However, Hellblade developer Ninja Theory may face closure after two agreements fell through, and consultations with Arkane, known for Dishonored and Deathloop, are ongoing.
These layoffs and studio changes indicate that Microsoft is progressing through its restructuring plans, but reports suggest that more than 1,300 employees may still be at risk as the process unfolds.