Halo Studios Developer Promoted Before Being Laid Off

Halo Studios, the team previously known as 343 Industries, has been affected by the latest Xbox layoffs and restructuring. Among those leaving is Cinematic Director Josh Daniels, who said he was promoted shortly before losing his job.

The cuts were announced on September 22, 2026, as part of Xbox’s continuing corporate reset. Xbox executive Matt Booty said more than 250 employees were laid off that day, following a much larger round of job losses in July.

The restructuring also changes where the Halo franchise sits within Microsoft’s gaming organisation. Development of Halo is moving under Activision, while Halo Studios is being broken up and repositioned as a support team.

Daniels described the timing of his promotion and dismissal in a LinkedIn post:

“Promoted and laid off in the same week is pretty wild. I’m one of the many hit by the Halo Studios layoffs. I’ll be taking some offline time today, but very much would love to talk to anyone looking for Cinematic Direction or Production roles. Feel free to get in touch if anything looks like I might be a fit,” posted Daniels on LinkedIn.

The announcement has added to concerns about the direction of Xbox’s recent corporate decisions. A promotion followed by a redundancy within the same week suggests a lack of coordination, even as the company continues to reorganise its studios and franchises.

The timing also recalls another recent Xbox departure: a developer connected with Gears of War was reportedly laid off only days after the company publicly celebrated completing development on the upcoming Gears of War: E-Day.

What the changes mean for games development

For players, the immediate impact on future Halo projects remains unclear. Moving the franchise under Activision and reshaping its longtime development group represents a significant change for one of Xbox’s most important series.

The wider situation is another reminder that game development teams can be radically altered even during major production milestones. Readers interested in the wider business of games can follow the latest stories in the RETROCADE Arcade Blog, while those exploring dedicated gaming hardware can browse arcade machines or consult the Arcade Machine Buying Guide.