Microsoft is reportedly preparing to announce another round of Xbox layoffs on September 22, with hundreds of jobs potentially at stake and several studios possibly heading toward consolidation. A person briefed on the plans told The Information that the final headcount, timetable, and affected teams remain unconfirmed. Tom Warren’s report also points to a September 22 announcement, describing the cuts as part of a wider restructuring rather than a completed layoff round.
Possible changes could merge smaller teams and move their projects under larger labels across Xbox Game Studios, Bethesda, Activision, and Blizzard. The reporting does not identify which studios would be combined or which employees would change reporting lines.
Halo could move under Activision
One unconfirmed possibility would place Halo development under Activision. NateTheHate2 wrote in a ResetEra post that Halo could move there, with other developers potentially following it and additional studios placed under different Xbox teams. In another post, NateTheHate said that “more than just Halo” could move under Activision Blizzard. Neither post establishes that any of those transfers have been approved.
A separate uncorroborated claim says Activision’s Call of Duty studios could also be merged, reducing their overall footprint. No affected Call of Duty teams have been identified.
Blizzard layoffs are also being claimed
Jason Schreier said on the 8-4 Play podcast that “The Blizzard layoffs are coming and imminent,” drawing mainly on conversations at BlizzCon in early September. The comment adds to the possibility that Blizzard could be involved in the new restructuring, but it does not provide a headcount or name specific teams.
Xbox’s 2026 cuts could reach 3,200 jobs
Earlier reporting described a plan to eliminate 3,200 jobs across Xbox by the end of July 2027. Microsoft’s first 2026 layoff wave affected 1,600 employees, leaving another 1,600 in that stated total. Tom Warren’s account instead gives the broader target a deadline at the end of June 2027. The differing dates keep the schedule provisional, while the expected September announcement would be one stage in a larger reduction across Microsoft’s gaming organization.
Blizzard was largely unaffected by the first wave, although the current claims place it alongside Xbox Game Studios, Bethesda, and Activision as a possible target of consolidation.
A Maryland WARN notice recorded cuts affecting 213 employees at ZeniMax Online and 166 at ZeniMax Media, while around 100 cuts at id Software were also reported during the earlier round.
Restructuring has also changed the ownership of several Xbox studios. Compulsion Games and Double Fine Productions are independent again, while Ninja Theory and Undead Labs have entered terms to join new ownership.
Arkane’s future remains unresolved as well. Its position was reportedly under discussion after the July cuts, with no further update supplied.
Asha Sharma has described the direction as a reset aimed at returning Xbox to growth. During the Bloomberg Tech conference, she said the business was “not in a healthy spot” and needed a reset.
Another round would add to Microsoft’s 9,000 job cuts in summer 2025 and its 1,900 cuts across Activision Blizzard, Bethesda, and Xbox in 2024. The summer 2025 reductions also came alongside the cancellation of the Perfect Dark reboot and Rare’s Everwild.
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