Halo Studios Avoids Layoffs Despite Rocky Release of Halo Campaign Evolved

However, they should not let their guard down, as higher-level Xbox management plans to lay off 1,600 people remain in effect.

Following the release of Halo: Campaign Evolved, reports surfaced online regarding potential layoffs at Halo Studios. The rumors were sparked by posts from several developers on LinkedIn stating they lost their jobs shortly after the game launched. This raised concerns that the studio, previously known as 343 Industries, had also been caught up in a new wave of cuts within Microsoft’s gaming division.

However, GamesBeat journalist Dean Takahashi reports that these are not internal layoffs of full-time staff. According to his source, the job losses affected exclusively external contractors whose work concluded after the project was released.

Although this information dispelled rumors of mass layoffs within the studio, it does not guarantee that similar measures will not happen in the future. It was previously reported that Xbox plans to cut about 1,600 more employees during fiscal year 2027 as part of ongoing business restructuring.