Activision to Develop Next Halo Game Amid Xbox Job Cuts

Microsoft’s gaming division, Xbox, announced a corporate “reset” in July that will see 3,600 positions eliminated across its global operations. The decision is part of a broader effort to streamline the business and refocus resources on high‑growth areas such as cloud gaming, subscription services, and next‑generation hardware.

The layoffs will affect teams in North America, Europe, and Asia, with the company stating that the cuts are intended to improve operational efficiency and reduce costs. Employees will receive severance packages and outplacement support, and the company has pledged to maintain its commitment to product development and customer service during the transition.

The announcement marks a significant shift in Xbox’s strategy, underscoring Microsoft’s intent to adapt to evolving market dynamics while preserving its core gaming portfolio. The move is expected to reshape the division’s workforce and operational priorities in the coming months.