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# Xbox Lays Off More Workers, Combines Studios
- URL: https://aftermath.site/xbox-layoffs-halo-obsidian/
- Published: 2026-09-22T14:39:49.000Z
- Updated: 2026-09-22T14:54:13.000Z
- Description: Xbox cut 268 additional jobs, and brought Obsidian under Bethesda alongside other changes
- Author: Riley MacLeod
- Tags: News, xbox, microsoft, layoffs, Labor, bethesda, activision, #top-story

Xbox entered the next phase of its "reset" today, following on the cuts and studio closures it undertook in [early July](https://aftermath.site/xbox-layoffs-july-2026/). According to a message from Matt Booty, there will be more layoffs, Ninja Theory couldn't find a buyer, and several studios will combine.

Booty wrote [in a message to Xbox staff](https://news.xbox.com/en-us/2026/09/22/continuing-our-reset/?ref=aftermath.site) that the company is eliminating "268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer." He wrote that this brings Xbox "roughly three-quarters of the way through previously announced restructuring."

Additionally, Booty wrote that Ninja Theory, one of the four studios that seemed poised to escape closure by finding new owners, was unable to do so, and that Xbox will "begin consultation with employees on a proposed closure while continuing to explore other paths forward." That process with Arkane also remains underway.

Lastly, there's a shakeup in Xbox's studio structure, with Rare and World's Edge joining Activision, Obsidian joining Bethesda, and Turn 10 and Playground becoming one studio. Booty writes that Activision will "be developing the next *Halo* title, led by a new, purpose-built team that is separate from ongoing development and plans for *Call of Duty*," while "a small team at Halo Studios" will continue supporting the game. Playground and Turn 10 will work together on *Forza* and *Fable*, and Obsidian will "continue its current projects, including *Grounded*, as well as the new *Fallout* project made in collaboration with Bethesda Game Studios." Microsoft Casual Games is also joining King.

Booty writes that there will be a town hall on October 6 where the company will discuss these changes more. 

[Layoffs Leave The Future Of Xbox’s Award-Winning Accessibility Efforts In DoubtFormer workers say Xbox cuts leave less resources and experts to make sure games are developed, labelled, and tested with accessibility in mind![](https://storage.ghost.io/c/30/f5/30f5b1bb-84ee-4c26-b446-fb9a5e512994/content/images/icon/favicon4-48815287-6d00-44e2-b167-96d668d4b2b8.png)AftermathGrant Stoner![](https://storage.ghost.io/c/30/f5/30f5b1bb-84ee-4c26-b446-fb9a5e512994/content/images/thumbnail/shutterstock_2084725474--1--3-d02b93d9-3f49-44f3-8df2-a04ee4f8c7ae.jpg)](https://aftermath.site/xbox-layoffs-accessibility/)