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Xbox cuts 268 jobs, nearing end of restructuring

By Drooid · Sep 24, 2026, 2:58 AM UTC · How we work

Summary

Xbox Announces Layoffs

Xbox announced 268 layoffs across Halo Studios, other first-party studios, and Xbox Game Studios management.
Chief Content Officer Matt Booty said cuts put the company about three-quarters through its restructuring plan.
Activision will develop the next mainline Halo game with a new team separate from Call of Duty projects.
A small Halo Studios team will keep supporting the community and existing in-market games.

Summary

King Employees Strike

King employees in Stockholm plan a 5 a.m. strike on September 25 after failed bargaining talks.
Workers allege AI tools replaced several positions during King’s recent 200-person layoff round.
Former King staff cite toxic management and pending lawsuit claims amid Xbox restructuring.
Microsoft will hold a town-hall on October 6 to address concerns of laid-off Xbox employees.
Consultation under French labor law continues for Arkane Lyon, expected to run through year-end.

History

Historical Context

Activision Blizzard bought King for $5.9 billion in November 2015, expanding into mobile gaming. Microsoft’s 2023 acquisition folded Activision Blizzard into its Xbox division, and King’s 2022 purchase of AI firm Peltarion signaled a shift toward automation. In 2024, Sweden’s Unionen club for King staff pressed regulators, echoing the restructuring tensions first seen after the 2015 deal.

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Xbox Announces Layoffs

Xbox announced 268 layoffs across Halo Studios, other first-party studios, and Xbox Game Studios management.
Chief Content Officer Matt Booty said cuts put the company about three-quarters through its restructuring plan.
Activision will develop the next mainline Halo game with a new team separate from Call of Duty projects.
A small Halo Studios team will keep supporting the community and existing in-market games.

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