Microsoft is laying off 268 Xbox staffers and Ninja Theory may close

Microsoft announced the elimination of 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer as part of a broader 3,200-role reduction planned for its 2027 fiscal year. The cuts follow a July layoff that affected 1,600 Xbox employees and are described by Xbox CEO Asha Sharma as the most significant restructure in Xbox history.