Xbox restructuring not done yet: 268 more layoffs and 3/4 of plan complete

• Xbox chief Matt Booty says the company is about three-quarters of the way through its planned restructuring after the July changes and the latest round.
• The layoffs reportedly affect Halo Studios, other first-party developers, and central Xbox Game Studios teams.

What happened

Microsoft is still working through a broader restructuring of Xbox and Microsoft Gaming. According to reports, 268 additional layoffs have now been announced across Xbox-related teams. That follows the earlier round in July, when Microsoft cut 1,600 jobs directly and announced another 1,600 layoffs for Microsoft’s fiscal year 2027.

Xbox chief Matt Booty is said to have told staff that the recent changes, together with the adjustments made in July, have brought the company to roughly three-quarters of the planned reset. That means the restructuring is not finished yet, and the reporting suggests more organizational changes could still follow.

The latest layoff round is linked in the reports to Halo Studios, other first-party game developers, and the management and central teams of Xbox Game Studios. The same reporting also says the next Halo game may have been affected by the layoffs at Halo Studios, although that detail is not fully visible in the provided text.

Background

The current round is part of a longer restructuring of Microsoft Gaming. The available information mentions studio consolidation and other organizational changes alongside the layoffs, but it does not fully clarify how Microsoft is counting the different rounds.

There is also still uncertainty about the exact breakdown of the 268 layoffs. The reports mention broad teams and studios, but do not provide a complete list of roles or departments. The claim that Blizzard layoffs are also coming is not fully confirmed in the provided information.