Today has not been a good day for Microsoft and the individuals impacted by the thousands of layoffs that occurred today. It was revealed that Turn 10 Studios, Rare, ZeniMax, and The Initiative were all impacted by these moves. It has now been learned that Halo Studios was also affected by these layoffs.
A few now former Halo Studios employees have shared online that they were let go from Halo Studios and are looking for new opportunities.
Breaking: Halo Studios was affected by the Microsoft Xbox layoffs. #Halo pic.twitter.com/K0FljAEYRO
— Rebs Gaming (@Mr_Rebs_) July 3, 2025
Rebs Gaming shared more information from Engadget, who spoke to a Halo Studios developer. At least 5 employees were laid off and were invited to a meeting with organization leaders. It’s believed the studio is very tense, especially when it comes to one project they’ve been working on.
The developer says Microsoft is trying its hardest to replace as many jobs as it can with AI agents. They are also trying to shift toward working with contracted studios rather than individual contractors.
It has been reported that a Halo: Combat Evolved Remake is likely going to be revealed later this year. The new project might even be revealed at the Halo World Championships.
