On July 6, Xbox announced a massive overhaul of its business. The changes would see the company shedding thousands of jobs as it looked to cut 20% of its organization over 12 months. That plan started with a handful of studios leaving the Xbox banner, while others faced deep cuts. The second phase of that operation rolled out on Sept. 22, and it saw Xbox taking similarly drastic measures. In a message shared to Team Xbox employees, chief content officer Matt Booty explained that Xbox was cutting an additional 268 jobs as it continues to restructure its publishing efforts. Booty also revealed that Ninja Theory faces closure after struggling to find a buyer, while talks to offload Arkane are still ongoing.

There’s a lot of information to sort through. The move sees Xbox Game Studios shrinking to the brink of non-existence, while Activision and Bethesda will shoulder more responsibility as Xbox’s primary publishers. Considering that Booty says that Xbox is only three-quarters of its way towards finishing its restructuring process, it’s safe to say that Xbox will look like an entirely different company next year than it did heading into 2026. Here’s the status of every remaining Xbox studio, following both rounds of layoffs.

Activision

One thing that’s been clear from Xbox’s restructuring so far is that Activision is only becoming more integral to the business. After being largely untouched by layoffs this summer, Activision avoided cuts for a second time. Instead, the publisher is now inheriting World’s Edge and Rare under its banner. On top of that, Activision is also set to become the new home for Halo. The studio is working on the series’ next game, as Halo Studios has been virtually reduced to a small support team according to Game File.

Blizzard is in a similar boat with Activision. It continues to avoid major cuts, as Xbox seems more focused on trimming down Xbox Game Studios rather than the other major publishers it owns. It’s not too surprising for Blizzard: The studio just came off an announcement-filled Blizzcon. With new World of Warcraft, Diablo, and Starcraft games coming, as well as some multimedia IP deals, Blizzard is now positioned to become a workhorse for Xbox over the next four years, when Starcraft is currently scheduled to launch.

Bethesda

It’s been very up and down for Bethesda since Xbox’s rest began. This summer, the publisher’s studios were hit hard; Id Studios and ZeniMax Online Studios both faced significant layoffs that impacted Doom and The Elder Scrolls Online. On top of that, Xbox announced that it was looking to sell Arkane. According to Booty’s September message, Xbox has yet to secure a buyer, but that process will continue through the end of 2026. This time around, Bethesda is getting more responsibilities hoisted upon its shoulders. The publisher will now Obsidian, which faced job cuts this summer. The move makes logical sense considering that Xbox has since confirmed that Obsidian is working on the next Fallout game as Bethesda itself continues to make the long-awaited Elder Scrolls 6.

Halo studios

Perhaps the biggest news out of September’s Xbox layoffs is the changes at Halo Studios. A good chunk of the 268 jobs Xbox cut this time around came from this team, with the rest affecting “other first-party studios” and Xbox Game Studios management. That comes just a few short months after the launch of Halo: Campaign Evolved, which included a tease of a Halo 2 remake. While the studio still exists, it seems as though it will function as a support studio for Activision as it creates its own Halo game. It’s currently unclear how many people are left at Halo Studios and what exactly the remaining team will focus on.