# Xbox Layoffs and Activision Takeover

> Xbox cuts 268 workers as Activision takes over Halo development.
- Title: Xbox Layoffs and Activision Takeover · The Hollywood Reporter
- Summary: Xbox cuts 268 workers as Activision takes over Halo development. Xbox is laying off 268 staff to complete a 3,200-person restructuring, while Activision will…
- Keywords: xbox, activision, halo, halo studios, rare, worlds edge, forza, turn 10, undead labs, bethesda, obsidian, king
- Source: The Hollywood Reporter — https://hollywoodreporter.com/business/business-news/xbox-layoffs-reorg-activision-takes-over-halo-games-1236707478
- Author: Tony Maglio
- Published: 2026-09-22T14:24:20+00:00
- Read time: 1 min
- Topics: xbox, activision, halo, halo studios, rare, worlds edge, forza, turn 10, undead labs, bethesda, obsidian, king
## Xbox cuts 268 workers
Xbox announced today it is laying off 268 workers as part of a broader staff reduction plan to cut 3,200 employees.
## Xbox restructuring continues
Xbox is about three-quarters of the way through its staff cuts, first announced in July, with additional studio changes.
## Undead Labs spun out
Undead Labs, which makes State of Decay 3, will operate independently under a new publisher for day-one Game Pass release.
## Bethesda absorbs Obsidian
Bethesda will take Obsidian in to develop the new Fallout game and continue Grounded.
## King merges with Microsoft Casual Games
King will combine with Microsoft Casual Games to unite global casual game design and live operations.
## Playground and Turn 10 merge
Playground and Turn 10 will merge to focus on Forza and Fable franchises after a decade-long partnership.
## Ninja Theory shuttered
Ninja Theory will close after failed agreements with Activision, with employee consultation underway.
## Activision takes over Halo
Activision will develop the next Halo game with Rare and World's Edge, aiming to create the greatest Halo game ever.
## Key takeaway

Xbox is laying off 268 staff to complete a 3,200-person restructuring, while Activision will develop the next Halo game with Rare and World's Edge.