
Xbox Cuts 268 More Jobs, Hands Halo and Rare to Activision in Sweeping Restructure
Microsoft has confirmed a second major wave of Xbox layoffs in 2026, eliminating 268 more roles as it continues what the company is calling a "reset" of its gaming business. The cuts follow an earlier round in July that eliminated 1,600 positions, and they come alongside sweeping structural changes that touch nearly every corner of Xbox Game Studios. Among the most dramatic announcements: the Halo franchise and legendary UK studio Rare have both been transferred to Activision, which will now develop the next mainline Halo title. Ninja Theory has been proposed for closure, Obsidian Entertainment is being folded into Bethesda, and the Forza and Fable studios are being merged. Undead Labs is being divested entirely.



