Microsoft's gaming division is preparing to conduct another round of layoffs, writes The Information, citing its sources. According to the publication, this will happen as early as this week.
Halo: Campaign Evolved
It is expected that the number affected will be in the hundreds, but exactly how many people will lose their jobs and from which teams is unknown.
The Information's sources added that as part of the round, XBOX also plans to consolidate several internal studios. Their names are also not disclosed.
Alongside rumors about the impending layoffs at XBOX, journalist Bloomberg Jason Schreier shared his perspective. Speaking on the 8-4 Play podcast, he stated that mass layoffs will at least impact Blizzard Entertainment — despite the company having recently made several major long-term announcements and seemingly being confident about its future. At the BlizzCon 2026 festival, the company announced its work on Diablo V (set to release in 2029) and a StarCraft shooter (set to release in 2030).
Additionally, insider NateTheHate hinted that the layoffs might affect Halo Studios. According to his information, as a result, the Halo franchise will move to Activision Blizzard.
It seems likely that all this is a continuation of the layoffs announced in the summer. At that time, Microsoft announced the reduction of 1,600 employees from the gaming division and warned that an equal number of people would leave XBOX by June 30, 2027.