Microsoft is cutting another 268 jobs across its Xbox gaming division as part of a major restructuring that will also move development of the next Halo game to Activision.
According to the report by GeekWire, The layoffs affect employees across Halo Studios, other first-party studios and Xbox Game Studios’ management and central operations teams. Microsoft said the broader Xbox restructuring is now about 75% complete.
Under the new structure, Activision will create a dedicated team to develop the next major Halo title, separate from its Call of Duty operations. A smaller team will remain at Halo Studios, formerly known as 343 Industries, to support existing Halo games and the player community.
Microsoft is also moving Rare and World’s Edge under Activision. Obsidian will become part of Bethesda, while Turn 10 Studios and Playground Games will merge to work across the Forza and Fable franchises. Microsoft Casual Games will move under King, the studio behind Candy Crush.
The changes follow Microsoft’s announcement in July that Xbox could eliminate around 3,200 positions, representing roughly 20% of the division. The company said the latest restructuring is aimed at operating fewer business units, bringing closely connected teams together and concentrating its publishing operations.
Microsoft is also considering the closure of Ninja Theory after two potential deals to transfer the studio fell through, while Seattle-based Undead Labs has been spun off as an independent studio.
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