Xbox Cuts 268 Jobs as Activision Takes Lead on the Next Halo Game
Xbox has made another major move in its ongoing restructuring, cutting 268 additional roles across Halo Studios and related management teams. The layoffs are part of what the company is calling its “Xbox Reset,” a broader effort to reorganize its gaming division and reshape the future of some of its biggest franchises.
One of the biggest changes is the future of Halo. Activision is now set to take a leading role in developing the next mainline Halo game, placing two of gaming’s most recognizable shooter franchises, Call of Duty and Halo, under the same publishing umbrella.
According to Xbox executive Matt Booty, the next Halo project will be handled by a newly formed, purpose-built team that is separate from Activision’s ongoing Call of Duty development plans. While this marks a major shift for the franchise, Halo Studios has not been completely closed. A smaller internal team will remain in place to support the Halo community and maintain previously released titles.
The restructuring has also drawn attention because of the timing of one high-profile layoff. Halo veteran Josh Daniels was reportedly promoted to cinematic director at Halo Studios and then laid off in the same week.
Daniels shared the news publicly on LinkedIn, expressing shock over the situation. He wrote that being “promoted and laid off in the same week” was “pretty wild,” adding that he was among those affected by the Halo Studios layoffs. He also noted that he would be taking some time offline while remaining open to cinematic direction or production opportunities.
The news has sparked discussion among Halo fans, many of whom are concerned about what these changes mean for the future of the franchise. Halo remains one of Xbox’s most important brands, but recent entries have faced mixed reactions from longtime players. With Activision now involved, expectations will be high for the next chapter.
Activision president Rob Kostich has described the goal clearly: to create the greatest Halo game ever, one that honors the franchise’s legacy while staying true to the elements that made players fall in love with it in the first place. He said the company is building a specialized team with the talent and experience needed to deliver the next major Halo experience alongside the community.
Despite the ambitious statement, Xbox and Activision have not yet revealed key details about the upcoming Halo game. There is currently no official title, codename, release window, gameplay reveal, or confirmed full development roster.
For now, the future of Halo appears to be entering one of its biggest transitions in years. With Activision taking a central role, Xbox reducing staff, and Halo Studios shifting into a smaller support-focused structure, the next game could represent a major turning point for the legendary sci-fi shooter series.
