# Microsoft lays off 268 Xbox staff, Ninja Theory faces closure

> Microsoft continues its massive gaming restructure with new layoffs and studio sales, but a deal to offload Ninja Theory has collapsed.
- Title: Microsoft lays off 268 Xbox staff, Ninja Theory faces closure
- Summary: Microsoft continues its massive gaming restructure with new layoffs and studio sales, but a deal to offload Ninja Theory has collapsed. Microsoft is…
- Keywords: microsoft, xbox, layoffs, ninja theory, studio closure, gaming restructure, activision, halo, double fine, compulsion games, undead labs, arkane
- Source: The Verge — https://theverge.com/news/998589/microsoft-xbox-layoffs-ninja-theory-closure
- Author: Tom Warren
- Published: 2026-09-22T14:01:16+00:00
- Read time: 1 min
- Topics: microsoft, xbox, layoffs, ninja theory, studio closure, gaming restructure, activision, halo, double fine, compulsion games, undead labs, arkane
## Microsoft cuts 268 Xbox jobs
Microsoft is laying off around 260 Xbox employees today as part of an ongoing reset of its gaming business, following 1,600 layoffs in July.

> The most significant restructure in Xbox history.
## Halo and other studios hit
The 268 eliminated roles span Halo Studios, other first-party studios, and Xbox management layers. These cuts bring the company roughly three-quarters through its previously announced restructuring.
## Ninja Theory sale falls through
Two separate deals to sell off Ninja Theory have collapsed. Microsoft is now starting a consultation period to close the studio unless another buyer emerges.

> Two separate agreements for Ninja Theory fell through.
## Four studios being divested
Double Fine and Compulsion Games have already gone independent. Undead Labs is completing its separation on similar terms, while Arkane remains in consultations through year-end.
## Activision takes Halo franchise
As part of the restructure, Activision is taking over Halo, Sea of Thieves, and World's Edge, the studio behind Age of Empires.
## 3,200 roles cut this fiscal year
Today's layoffs are part of 3,200 total roles impacted across Microsoft's 2027 financial year, which ends in June 2027.
## Key takeaway

Microsoft is dismantling its Xbox studio portfolio through layoffs and forced sales, with Ninja Theory now facing closure after two acquisition deals fell through.