Xbox implemented a new wave of corporate restructuring on Tuesday, September 22, 2026, cutting over 250 jobs across the company. The layoffs affected Halo Studios cinematic director Josh Daniels just days after he received a promotion.

  • Over 250 employees impacted by Xbox layoffs on September 22, 2026
  • Josh Daniels laid off days after promotion
  • Future Halo game development moving to Activision
  • Halo Studios transitioning into a support team

Corporate Restructuring and Layoffs

The cuts follow a previous round of job reductions that occurred in July. Xbox management decided to shift the operational structure of its flagship franchise during this reorganization.

"Promoted and laid off in the same week is pretty wild"

Josh Daniels, Cinematic Director

Shift to Activision

Future development for the Halo franchise is moving under Activision. Halo Studios will downsize from its primary development role into a support team for these future projects.

This massive shift marks a definitive end to an era for the historic studio, completely altering how Xbox manages its most iconic intellectual property moving forward. Industry observers note that transferring core franchise responsibilities to Activision represents a radical consolidation of development resources under a single corporate umbrella. As the dust settles from the September 22 announcements, affected workers navigate the sudden uncertainty left in the wake of the restructuring, which arrives on the heels of the significant workforce reductions implemented earlier in July.

The July workforce reductions had already left personnel feeling vulnerable, but the September measures targeted leadership roles with unexpected severity. Activision will now assume full control over crafting upcoming titles in the franchise, altering the pipeline that previously anchored Halo Studios as a standalone powerhouse.