Xbox has laid off an additional 268 employees this week as part of its previously announced job-eliminations plan. The new cuts primarily affect Halo Studios, other first-party studios and the XGS management and central functions layer, Xbox chief content officer Matt Booty said in a memo to staff Tuesday. Amid the cuts, the Microsoft-owned gaming company has also undergone a studio reorg that will see teams combine under the goal to “strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise,” per Booty.
From here on out, Activision will oversee studios World’s Edge and Rare and will also be developing the next “Halo” title. According to Booty, this “Halo” game will be “led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.” Other studio changes include Bethesda adding in Obsidian, King combining with Microsoft Casual Games, and Playground and Turn 10 merging into one studio focused on the “Forza” and “Fable” franchises.
As part of its first round of layoff announcements in July, Xbox also announced plans for divesting some of its studios, beginning with Compulsion and Double Fine. Per Booty’s Tuesday announcement, Undead Labs has now successfully transitioned and is partnering with a new publisher to release “State of Decay 3″ day one on Game Pass. Booty says “two separate agreements for Ninja Theory fell through,” and Xbox is now in talks with Ninja Theory employees about a “proposed closure while continuing to explore other paths forward.” Xbox says consultation with French studio Arkane “remains underway and is expected to continue through the end of the year.” In July, new Xbox CEO Asha Sharma announced the company planned to reduce its workforce by up to 3,200 employees — or 20% of total staff — over the next year in the “most significant restructure” in the Microsoft division’s history.
It’s an honor and a responsibility that we do not take lightly,” Activision president Rob Kostich said in a statement. For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place. It is a bold ambition, one that this franchise deserves.
We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community. To the World’s Edge and Rare teams, we can’t wait to get to work together.” Read Booty’s message to staff and the Xbox community, which was shared on Xbox’s official Xbox Wire blog Tuesday, in full below. I’m writing to share several updates as part of the XBOX reset outlined earlier this year.
First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them.
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