Halo Studios Reportedly Down to Just 20 Staffers Following Latest Xbox Layoffs as Former Executives Decry the Purge

Microsoft’s gaming division continues to navigate a turbulent internal reboot, executing a fresh wave of layoffs earlier this week that sadly eliminated more than 200 jobs company-wide. Halo Studios bore the brunt of these latest cuts, leaving things looking increasingly bleak.

Recent industry reports indicate that Halo Studios, renamed from 343 Industries, has effectively been reduced to a skeleton support crew of roughly a dozen workers. In the wake of the news, former studio leaders have stepped forward to offer solidarity and encourage affected staff.

Only 20 Employees Remain at Halo Studios After Layoff

It all began on September 22, 2026, when Microsoft Gaming announced its second major workforce reduction of the year. In an internal memo, Microsoft Studios head Matt Booty confirmed 268 terminations spanning Halo Studios, administrative divisions, and several unnamed developer teams.

In addition, Xbox confirmed that Activision, the publisher behind Call of Duty, will take the reins on the next mainline Halo title. The decision effectively strips the former 343 Industries of the franchise it was explicitly created to oversee following original developer Bungie’s departure.

An official Xbox spokesperson noted that a “small team” will remain at Halo Studios solely to maintain community support and online services for existing titles. While official headcounts were not disclosed, emerging reports paint an alarming picture of the studio’s reduced scale.

According to content creator and esports veteran aPureGangster, a “very, very reliable source” indicates that Halo Studios retains barely 20 active developers following this week’s wave of terminations.

While Microsoft has not verified these exact figures, it is evident that a significant number of people have been laid off. Former cinematics director Josh Daniels revealed on LinkedIn that he was promoted and laid off in the same week, noting he was “one of the many hit by the Halo Studios layoffs.”

Former Halo Studios Executives React to Layoffs

Although Activision’s vision for the franchise remains to be seen, the outlook for Halo Studios itself is grim and this has drawn public reaction from the studio’s original leadership.

343 Industries founder and former Halo head Bonnie Ross expressed dismay over the news: “It was difficult to wake up to the news that the Halo Studio is essentially being shut down today, with only a small number of roles remaining.”

Kiki Wolfkill, another longtime executive associated with the franchise, voiced similar heartbreak over the sudden cutbacks.

“Sending love and support to everyone impacted by the layoffs at Halo Studios and across Xbox. I know how much talent, heart, and care these teams pour into this work—and how deeply this can affect individuals, families, and teams,” she said on social media.

What do you think will happen to Halo Studios? Share your thoughts in the comments below.

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