Layoffs
Ongoing coverage on Layoffs.
Latest coverage
State of Decay studio Undead Labs goes independent after Xbox restructuring, but lays off "a significant number" of the team in doing so
Undead Labs, the developer of the State of Decay series, has become an independent, worker-owned studio after being acquired by Microsoft in 2018. This transition comes with significant layoffs, with the studio stating "a significant number" of staff are departing. Despite the restructuring, development on State of Decay 3 continues for PC, PlayStation, and Xbox, with a closed beta planned before the end of the year and a 2027 release target.
Evening Reading - September 22, 2026
Xbox has confirmed significant layoffs affecting 268 employees across Halo Studios, Xbox Game Studios, and more. This restructuring includes the next Halo game being developed by Activision, and the merger of Turn 10 and Playground Games. Additionally, Obsidian Entertainment and Rage/World's Edge will now report under Bethesda and Activision respectively.
Xbox Layoffs: 268 Employees Affected in Latest Restructuring — Too Much Gaming | Video Games Reviews, News, & Guides
Xbox has undergone significant restructuring, impacting 268 employees. While studios like Compulsion Games, Double Fine Productions, and Undead Labs are safe and continuing work on titles like State of Decay 3, Ninja Theory and Arkane Lyon face potential closure. The article suggests Microsoft grew too quickly and its investment in Xbox Game Pass is now contributing to these cutbacks.
Gears of War: E-Day Story Director Laid Off Just a Week Before Early Access Launch
The story director for Gears of War: E-Day has been laid off just one week before the game's early access launch. This news comes as a surprise given the proximity to the release.
Games Inbox: Are you still an Xbox fan?
Readers express deep concern over recent layoffs at Xbox and the perceived decline of the brand's relevance and developer support. While some praise Capcom's successful year and positive employee treatment, others question Microsoft's strategy and the future of its studios.
Obsidian Will Retain Leadership and “Creative Identity” Under Bethesda – Rumor
A rumor suggests that Obsidian Entertainment will maintain its leadership and creative identity while reporting to Bethesda under a new organizational structure within Xbox. This change comes amidst significant layoffs and restructuring within Xbox, raising concerns for Obsidian's future despite assurances of continued creative independence and ongoing work on a new Fallout project.
Halo: Campaign Evolved Cinematics Director Says He Was Promoted Shortly Before Being Laid Off
Xbox's cinematics director for Halo: Campaign Evolved, Josh Daniels, was promoted and then laid off in the same week as part of new job cuts affecting 268 workers at Halo Studios. Xbox EVP Matt Booty confirmed the layoffs are part of a larger plan to eliminate around 1,600 roles. Activision will now take over leadership for the Halo franchise, with its president Rob Kostich aiming to "make the greatest Halo game ever."
Gears of War: E-Day’s Story Director Juan Vaca is Among Those Affected by Xbox’s Latest Layoffs
Xbox has conducted another round of layoffs, affecting numerous employees across Xbox Game Studios, including Juan Vaca, the story director for the upcoming Gears of War: E-Day. Vaca confirmed his departure on LinkedIn, stating he is seeking new opportunities. The news comes shortly before the game's scheduled October 6th release on PC and Xbox Series X/S, though The Coalition has stated the game is on track and has gone gold.
Xbox is Avoiding its Layoff Target of 1,600 More Cuts by End of Fiscal Year – Rumor
A report suggests Xbox will miss its target of 1,600 layoffs by restructuring divisions and divesting studios instead. Companies like Double Fine, Ninja Theory, Undead Labs, and Compulsion Games are becoming independent or being sold. This comes after 268 roles were eliminated, with further consolidation and potential studio closures, including Ninja Theory, being discussed.
State of Decay 3 Remains in “Active Development” Despite “Significant” Layoffs at Undead Labs
Undead Labs, now independent from Xbox, has announced significant layoffs, raising concerns about State of Decay 3's development. Studio head Philip Holt confirmed the game remains in "active development" on schedule, utilizing Unreal Engine 5 and assistance from The Coalition. Despite past allegations of a toxic work environment and previous rumors of layoffs, the game is still targeting a 2027 release for Xbox Series X/S, PlayStation 5, and PC, and will be available on Game Pass.
What the Hell is Going on With Halo and Xbox?
Xbox Game Studios has announced significant layoffs at Halo Studios, formerly 343 Industries, with 268 roles eliminated. A smaller team will continue to support existing Halo titles, while a new, separate team under Activision will develop the next mainline Halo installment. This move is part of a broader strategy to accelerate franchise output and streamline development, though it has led to widespread criticism regarding job security and studio management.
State of Decay Developer Undead Labs Responds to 'Significant' Layoffs Following Independence from Xbox
State of Decay 3 developer Undead Labs has confirmed significant layoffs following its recent independence from Xbox. The studio's financial situation appears to be unstable after the split.
Xbox lays off more jobs and consolidates its studios in massive restructure
Xbox announced further layoffs, cutting 268 jobs and significantly restructuring its studios. Key developers like Bethesda and Activision will expand their remits, while Playground Games and Turn 10 Studios will merge. A dedicated team within Activision will now develop the next Halo game, and the futures of Ninja Theory and Arkane Studios remain uncertain.
Halo cinematic director "promoted and laid off in the same week" as Microsoft continues sweeping Xbox layoffs
Microsoft continues its significant layoffs across Xbox, impacting studios like Halo Studios, Ninja Theory, and Arkane. Former Halo Studios cinematic director Josh Daniels reported being promoted and laid off in the same week. Xbox CCO Matt Booty stated these cuts are part of a larger restructuring plan that will eliminate 3,200 employees in total.
Halo Studios Cinematic Director Promoted and Laid Off Within the Same Week as Xbox's Brutal Restructuring Continues
Josh Daniels, cinematic director at 343 Industries, was promoted and then laid off within the same week as part of Xbox's significant restructuring. This comes as Activision is reportedly taking over the next Halo game.
Rare & World's Edge will now report to Activision following Xbox layoffs
Following recent Xbox layoffs, developers Rare and World's Edge will now report to Activision. This change impacts the studios behind franchises like Sea of Thieves and Age of Empires, with Activision also overseeing the next Halo game. The future for these studios appears uncertain amidst ongoing restructuring.
After Microsoft's latest bloodbath, former Blizzard president Mike Ybarra offers "props to Xbox" for dismantling Halo Studios: "The best decision to reset Halo"
Following significant layoffs at Microsoft's Xbox division, former Blizzard president Mike Ybarra praised the company's decision to move the Halo intellectual property to Activision, calling it a positive reset for the franchise. The article notes that hundreds of Xbox employees were laid off, and Halo Studios has been reduced to a small support team as Activision takes over future Halo game development.
What Is Xbox Game Studios At This Point?
Recent changes and layoffs within Xbox have led to a significant restructuring of its studios, questioning the identity and purpose of the 'Xbox Game Studios' brand. With only four studios remaining under its direct banner and others absorbed into Bethesda or Activision Blizzard, the publisher's internal structure has become complex and its future branding uncertain.
Halo Studios didn't have the chance to launch even one original title before Xbox decided to let Call of Duty…
Microsoft has shut down Halo Studios (formerly 343 Industries) after 268 layoffs, with the Halo franchise now being transferred to Activision. The studio never launched an original title, only a remake of Halo: Campaign Evolved, before its closure. This move is part of broader restructuring within Xbox Game Studios, which has seen significant cuts across multiple developers.
Xbox Layoffs Are Not Done Yet
Microsoft has announced an additional 268 layoffs within its Xbox division as part of a broader business reset. Xbox CEO Asha Sharma cited factors like underperforming Game Pass investments and industry hardware crises for the restructuring. Further staff reductions are expected as the company continues its overhaul.
