Matt Booty, Xbox chief content officer, confirmed the reductions in an internal memo, noting that roles are being eliminated within Halo Studios, various central functions, and management layers. These layoffs represent a significant portion of the 3,200 roles Microsoft previously signaled would be cut by the end of its 2027 fiscal year. This latest move brings the company roughly 75% of the way through its planned corporate realignment.
Microsoft Cuts 268 Xbox Jobs as Ninja Theory Faces Potential Closure
Xbox is shedding 268 positions across its first-party studios and management, marking another wave in a restructuring effort that has already impacted thousands of workers. The cuts include a proposed shutdown of Ninja Theory, as failed divestment talks leave the studio’s future hanging in the balance.
The situation for Ninja Theory remains precarious. After two separate agreements to sell the developer fell through, Microsoft has entered a formal consultation period regarding a potential closure. While the company continues to search for alternative buyers, the studio’s survival is no longer guaranteed. Conversely, the divestiture of Undead Labs is moving forward, with the studio successfully transitioning to independence under terms similar to those previously secured by Double Fine and Compulsion Games.
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