Xbox reportedly to lay off hundreds; Halo development may shift to Activision

GG Brief Editorial Desk · AI-assisted, source attributed

Insider Gaming reported that Xbox will lay off 'hundreds' of employees this week and consolidate multiple studios, and that Halo development could be moved under the Activision banner. The article cites The Information as saying ‘someone briefed on the plans’ told them hundreds would be cut in the coming days. Insider Gaming notes this would be a second wave of redundancies after a June 'big reset' that saw 1,600 employees let go, and says consolidation may involve smaller studios migrating under larger labels with projects and employee bases absorbed. These details are presented in the report as claims and suggestions rather than confirmed statements from Xbox.

What changed

Insider Gaming reported claims that Xbox will enact a further round of layoffs totalling 'hundreds' of employees and will consolidate studios, with at least one suggestion that Halo's development could move under Activision.

Timeline

  • June 2026: Insider Gaming references an earlier 'big reset' when 1,600 employees were let go.
  • September 22, 2026: Insider Gaming published the report citing The Information and other posts claiming the new cuts will occur 'this coming week.'

Limits

  • The details in the Insider Gaming piece are described as claims and suggestions sourced to The Information and unspecified recent posts; Insider Gaming does not present these as confirmed statements from Xbox.
  • The report does not name which specific studios, teams, or roles are to be affected, nor does it provide an official Xbox confirmation of the alleged moves.