Microsoft Cuts 268 More Xbox Roles as Ninja Theory Faces Potential Closure
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The gaming giant continues a massive 'reset' involving studio divestitures and a reorganization of franchise management.
Microsoft has laid off 268 Xbox employees as part of a broader "reset" of its gaming division, according to reporting from The Verge. These cuts impact the XGS management and central functions layer, as well as Halo Studios and other first-party developers.
Xbox chief content officer Matt Booty stated in a memo that these latest reductions, combined with studio divestitures, bring the company to roughly three-quarters of the way through a previously announced restructuring. This follows 1,600 layoffs in July, which Xbox CEO Asha Sharma described as the most significant restructure in the brand's history. The total number of roles impacted over Microsoft's 2027 financial year is expected to be 3,200.
The restructuring includes the sale of four studios. While Compulsion Games and Double Fine have already gone independent and Undead Labs has completed its separation from Xbox, Ninja Theory may now close. Booty explained that two separate agreements to sell the studio fell through, leading Microsoft to begin a consultation period for a proposed closure unless a buyer is found.
Additionally, Microsoft is conducting consultations regarding the future of Arkane and the Blade game under French labor laws, a process expected to continue through the end of the year. As part of a larger reorganization, Activision is taking over the Halo franchise, along with World's Edge (the studio behind Age of Empires) and Sea of Thieves.