Xbox has announced another round of job cuts and organisational changes under its continuing “reset” plan. The most significant change for the franchise is that Activision will now lead development of the next mainline Halo game, while Halo Studios, previously known as 343 Industries, has been heavily reduced.
In a Tuesday memo, Xbox executive Matt Booty confirmed that more than 250 positions were being eliminated, including roles at Halo Studios. The affected employees include experienced Halo developers, and at least one person was reportedly promoted only a day before the cuts were announced.
Halo Studios will no longer develop the next major Halo instalment. Instead, a new Activision-based team will take the lead, leaving the remaining Halo Studios staff in a support role for the franchise.
The decision has prompted an emotional response from former developers and executives who helped shape the series. Their comments underline the impact on artists, designers, engineers, producers, community staff and other specialists across the team.
Former Halo executive producer Kiki Wolfkill posted former Halo executive producer Kiki Wolfkill on LinkedIn, describing the news as devastating and offering support to everyone affected across Halo Studios and Xbox. She highlighted the talent, care and personal commitment involved in making the games, as well as the consequences for employees, families and teams.
Halo co-creator Marcus Lehto shared on Twitter that he was shocked, although not completely surprised, by the layoffs and the change in direction. Lehto wished the affected developers well and said he was eager, like the wider audience, to discover what comes next.
“Shocked but not entirely surprised by the news of the Halo Studios closure and moving the franchise to an Activision team.”
“Wishing the best for all the devs who were affected by this decision.”
— Marcus Lehto, September 23, 2026
Bonnie Ross, a longtime Halo leader, said on LinkedIn that it was difficult to wake up to news that Halo Studios had been essentially shut down. She said hundreds of talented people had been affected, listing creative, design, engineering, production, art, narrative, audio, data, operations, community and franchise roles among those involved.
Former Halo art director Horia Dociu shared his thoughts on the Xbox news, sending support to former colleagues and friends. Dociu said the scale of the layoffs was heartbreaking given the talent in the studio and the effort employees had invested in the franchise.
Brad Hilderbrand, who previously served as a senior public relations manager for Halo, posted about the layoffs on LinkedIn. He said he was unsure whether sadness or anger best described his reaction to the cuts and the reduced role of Halo Studios.
“After spending more than four years with the Halo team and seeing its passion for the franchise, it is absolutely brutal to see the studio reduced to a shell that is only there to keep the servers running until Xbox eventually decides to close the remaining operation.”
Hilderbrand described Halo as Xbox’s “crown jewel” and said it was painful to see the franchise treated in this way. He expressed sympathy for the former team members, while warning that the wider games industry remains deeply unsettled and that he could not promise what would happen next.
The upheaval adds another major chapter to the changing history of one of Xbox’s most recognisable series. Readers interested in the wider gaming business can follow the Arcade Blog, while those exploring dedicated home setups can browse arcade machines or compare options in the Arcade Machine Buying Guide.
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