Microsoft's Xbox division is cutting additional jobs and transferring the Halo franchise to Activision as part of a wider studio reorganization, qz.com reports. The changes were announced on Wednesday, September 23, 2026.
According to qz.com, the shake-up includes layoffs at Halo Studios, the team previously responsible for the franchise. Following those cuts, Xbox has confirmed that Activision will now handle Halo development, Forbes reports. Press Start Australia also reported that Activision will take over the series as part of a host of studio changes and cuts announced by Xbox.
The moves come amid a deeper internal restructuring at Xbox, according to Windows Central, which reports that layoffs are expanding, acquisitions have stalled, and studios are shifting under new leadership. PCMag Australia reports that Microsoft has tasked Activision with building the next Halo game while the layoffs continue.
The reporting does not specify how many employees are affected or which other studios are involved beyond Halo Studios. No timeline for the next Halo project has been disclosed.
What to watch next: whether Xbox details the full scope of the layoffs and confirms which studios will operate under the new leadership structure.
