Microsoft is laying off 268 Xbox employees and transferring major franchises including Halo to Activision as part of a major gaming restructure. The moves continue a broader consolidation that has already impacted over 1,600 roles.
Microsoft's Xbox division is undergoing significant changes with 268 job cuts announced today across Halo Studios and other first-party teams. The layoffs are part of an ongoing "reset" of the gaming business that Xbox CEO Asha Sharma previously called "the most significant restructure in Xbox history."
The cuts add to 1,600 Xbox employees affected by layoffs in July 2025. Combined with today's reduction, roughly 3,200 roles will be impacted by the end of Microsoft's 2027 financial year in June 2027.
Franchise Transfers
Activision, the Call of Duty maker owned by Microsoft, is taking control of Halo, Sea of Thieves, and Age of Empires. Halo Studios will continue supporting existing titles but faces significant staffing reductions from today's cuts.
Studio Closures
Ninja Theory is likely closing as part of the restructure. The studio, acquired by Microsoft in 2018, has been impacted by the ongoing consolidation efforts.
Context
The Xbox restructure reflects Microsoft's shift toward consolidating its gaming operations under fewer umbrellas. By moving major franchises to Activision—already a powerhouse within Microsoft Gaming—the company is reducing operational overhead and centralizing development.
The changes mark a significant departure from Xbox's previous strategy of building a diverse portfolio of first-party studios. Previous attempts to sell Ninja Theory fell through over the summer, leading to the likely closure announcement today.
Xbox has faced mounting pressure to demonstrate profitability and justify its substantial investments in gaming. These moves suggest a focus on fewer, larger franchises backed by established development teams rather than maintaining a broad network of studios.
Meta has acknowledged that its Muse AI assistant was "heavily inspired" by OpenClaw, despite claiming the system was built from scratch. The admission includes similarities in workspace filenames and content.
The Horowitz Andreessen Academy is opening a new educational program designed to prepare students for careers in artificial intelligence, moving away from traditional college structures and majors.
Andreessen Horowitz is creating an academy that bridges trade school, Y Combinator, and the Thiel Fellowship, targeting promising high school graduates instead of college dropouts.
Adobe has released Premiere mobile for Android, one year after the app debuted on iOS. The mobile editing application is now available to Android users.