Microsoft Cuts 268 Xbox Jobs as Gaming Restructuring Continues

Microsoft is cutting 268 jobs across Xbox’s first-party studios, Halo Studios and its gaming management and central functions as part of a broader restructuring of its gaming business. According to Xbox chief content officer Matt Booty, the latest cuts, along with studio divestitures completed since July, take the company roughly three-quarters of the way through its previously announced restructuring. The broader plan is expected to affect around 3,200 roles during Microsoft’s financial year ending July 2027.

The restructuring is also affecting Xbox’s studio portfolio. Double Fine and Compulsion Games have already become independent, while Microsoft is continuing efforts to sell Undead Labs. Two separate agreements to sell Ninja Theory reportedly fell through, prompting the company to begin consultations with employees over a proposed closure while continuing to look for alternatives. The future of other studios and projects, including Arkane and Blade, remains uncertain as consultations continue.