Matt Booty Xbox Wire September 22 2026 268 Roles Eliminated Halo Studios Other First-Party Studios XGS Management Central Functions Actions Since July Including Studio Divestitures Bring Reset Three-Quarters Complete
Matt Booty, President of Xbox Game Content and Studios, announced on September 22 in a message sent to Team Xbox employees globally that 268 roles are being eliminated across Halo Studios, other first-party studios, and the XGS management and central functions layer. The cuts are part of the Xbox reset outlined earlier this year, and the actions completed since July, inclusive of the studio divestitures, bring Xbox roughly three-quarters of the way through the previously announced restructuring. XBOX Wire
In July 2026, Xbox President Asha Sharma announced what she described as “the most significant restructure in Xbox history,” involving approximately 3,200 job cuts during fiscal year 2027, including 1,600 immediate role eliminations. In an email to employees, she said the business was “not healthy,” was operating at margins “3–10x lower than comparable platform and publishing businesses,” and that Microsoft “must reset Xbox.” Wikipedia
The September 22 round focuses specifically on Halo Studios, home of the iconic franchise that remains central to Xbox’s first-party identity, alongside other studio teams and the management layer that sits above them. The XGS central functions cuts indicate Microsoft is flattening the organisational structure, removing layers between studio leadership and executive decision-making. Studio divestitures completed since July have formed a significant portion of the reset’s progress, meaning that physical headcount reductions represent only part of the restructuring picture.
With the reset now three-quarters complete, the remaining quarter will determine what Xbox’s first-party publishing model looks like in its final, leaner form. Check out our previous coverage of Microsoft and Xbox on The Trusted Times.
