Bonnie Ross, the woman who founded 343 Industries and built the Halo brand, woke up yesterday to news that Microsoft was shutting down Halo Studios. She posted on LinkedIn that the studio was being “essentially shut down today, with only a small number of roles remaining.”
Kiki Wolfkill, who led 343 Studios for years, was also gutted. She said she was “gutted to hear the news today” and offered her door as open to anyone seeking help.
The Layoffs and the Promotion That Didn’t Stick
Microsoft announced yesterday that 268 people lost their jobs as part of its Xbox cuts. The cuts hit Halo Studios, other unnamed first-party studios, and Xbox Game Studios management layers.
Josh Daniels, the cinematic director, got a promotion and then lost his job in the same week. He wrote on LinkedIn: “Promoted and laid off in the same week is pretty wild.”
The pattern of promotion followed by layoff shows how quickly the situation changed for some employees. One former employee told reporters that they, along with the majority of Halo Studios, were laid off yesterday.
Another former employee said Halo Studios “shut down” today.
What Was Lost
Ross listed the roles affected: creatives, designers, engineers, producers, artists, narrative and audio specialists, data insights, ops, community leaders and franchise teams.
Halo Studios is now reduced to a “small” support team. A “purpose-built” team at Activision, separate from Call of Duty, has been created to develop “the next Halo title.”
The History Behind the Name
343 Industries was created in 2007. The studio was rebranded as Halo Studios two years ago.
Other Studios, Other Fates
The cuts did not stop at Halo. Ninja Theory appears to face impending closure as a result of yesterday’s cuts. Obsidian moves under Bethesda’s control. Playground and Turn 10 merge. Undead Labs goes independent. Rare, World’s Edge and Halo move under Activision’s control.
Undead Labs has suffered major layoffs. World’s Edge, developer of Age of Empires and Mythology, has also seen major cuts.
The Numbers Behind the News
- Laid off: 268 people
- Studio status: Halo Studios reduced to a “small” support team
- New team: A “purpose-built” team at Activision developing “the next Halo title”
- Unconfirmed reports: Some outlets suggest the layoffs are in their hundreds
- Rebranding: 343 Industries became Halo Studios two years ago
Comparing the Studios Affected
| Studio | Fate |
|---|---|
| Halo Studios | Shut down, reduced to a small support team |
| 343 Studios | Rebranded as Halo Studios two years ago |
| Ninja Theory | Facing impending closure |
| Obsidian | Moves under Bethesda’s control |
| Playground | Merges with Turn 10 |
| Undead Labs | Goes independent |
| Rare | Moves under Activision’s control |
| World’s Edge | Major layoffs |
What This Means for Halo
The shift to Activision changes who controls the next game in the series. The purpose-built team at Activision is separate from Call of Duty, which suggests Microsoft wants the two franchises to operate independently.
The cuts also leave Halo Studios with far fewer staff than before.
The Human Cost
Wolfkill’s offer of an open door speaks to the personal stakes. These are not abstract losses. These are people whose livelihoods were disrupted yesterday.
The promotion-and-layoff story is particularly striking. It shows how fast decisions moved and how little warning some employees had.
Where the Story Stands
The exact toll of the layoffs remains unclear. Unconfirmed reports suggest the number could run into the hundreds.
The reorganization is ongoing. Halo Studios is shut down. The new team at Activision is building the next title.
The story of Halo Studios is over. The story of Halo, whatever form it takes next, has only just begun.
Source material: “Former Halo leaders lament effective closure of Halo Studios, as one employee finds themselves promoted and fired in same week,” Eurogamer.
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