'Promoted and Laid off in the Same Week Is Pretty Wild': 268 Xbox Roles Eliminated as Xbox Continues 'Reset'

Microsoft announced another 268 job cuts across its Xbox business on Tuesday, 22 September, as part of its ongoing 'reset'. The cuts affect Halo Studios, other first-party studios, and Xbox Game Studios' management and central functions.

Former cinematic director at Halo Studios Josh Daniels was among those affected. He later stated, 'Promoted and laid off in the same week is pretty wild,' on his LinkedIn page.

The latest reductions are part of a broader restructuring that Microsoft says is now roughly three-quarters complete. Furthermore, the company is reorganising several of its studios, with some developers being merged together.

Former Employees Speak Out on the Mass Layoffs

Following the announcement from Xbox, former employees from different first-party studios spoke about their layoffs on LinkedIn. The Halo Studios creative director continued his remarks, saying that he'll be offline for the time being but 'would love to talk to anyone looking for Cinematic Direction or Production roles'.

Daniels was credited as cinematic director on Halo: Campaign Evolved, which was developed by Halo Studios, formerly known as 343 Industries. The game launched on 28 July, roughly two months before the latest layoffs were announced.

Meanwhile, Juan Vaca, the story director of Gears of War: E-Day, a game that's slated to release in October, also confirmed his layoff on social media. Vaca also added that he's now open to opportunities in games, film and television.

Four days before the announcement, Vaca shared that Gears of War: E-Day had gone Gold. 'Excited for the world to see what the whole team's been cooking,' he added.

Xbox Consolidates Its Studios

With the Xbox 'reset' cutting or consolidating major first-party studios, some projects were handed to other developers. Due to Halo Studios being affected by the restructuring, the next Halo game will be developed by a new team at Activision, separate from the people working on ongoing Call of Duty projects.

Moreover, Activision has expanded its remit to include Rare and World's Edge, whose notable works include Sea of Thieves and Age of Empires, respectively.

Obsidian will now fall under Bethesda's remit while continuing its current projects, including Grounded and a new Fallout project made in collaboration with Bethesda Game Studios.

Meanwhile, Playground Games and Turn 10 will operate together as a single studio focused on making Forza and Fable titles. Additionally, Compulsion Games, Double Fine and Undead Labs have been divested and returned to independent management.

Ninja Theory is also facing a proposed closure, with Microsoft beginning consultations with employees while it explores other options.

Further Layoffs Follow Earlier Cuts

The recently laid-off 268 Xbox employees are part of a broader reduction affecting between 500 and 600 Microsoft workers globally, according to a company spokesperson cited by KUOW. Approximately 300 of those positions are in Washington state.

They also follow significant reductions announced earlier in the year, when Microsoft previously outlined plans to reduce the workforce by approximately 3,200. The company also stated that the measures are intended to consolidate its studios and reorganise its gaming operations.

For now, Microsoft said its immediate focus is on supporting employees affected by the latest changes. Matt Booty, Microsoft's president of game content and studios, also said the company would continue working towards its 6 October Xbox town hall, where staff are expected to reflect on the restructuring and Microsoft's future plans.