Xbox has cut over 250 jobs in its latest round of layoffs, and the cuts hit Halo Studios particularly hard. In a memo sent yesterday, Xbox exec Matt Booty confirmed that the studio behind the flagship franchise will no longer develop the next mainline Halo game. Instead, a new team within Activision will lead that project, while Halo Studios remains as a support studio for the series.
The move has sparked strong reactions from people who built the series. Former Halo executive producer Kiki Wolfkill posted on LinkedIn: “Gutted to hear the news today.” Marcus Lehto, Halo co-creator, said on Twitter he was “shocked but not entirely surprised.” Bonnie Ross, longtime Halo boss, said on LinkedIn it was “difficult to wake up to the news” that Halo Studios had been “essentially shut down.”
Brad Hilderbrand, former Halo senior PR manager, offered a sharper assessment. “Absolutely brutal to see that studio reduced to a shell that’s only there to keep the servers turned on,” he wrote on LinkedIn. He continued: “To see that jewel being functionally thrown in the garbage hurts a lot. My heart goes out to the now-former Halo team, as well as everyone else who was impacted today.”
The Scale Of The Cuts
The layoffs are part of Xbox’s ongoing “reset” plan, which has reshaped the company’s structure over the past few years. Booty’s memo confirmed the numbers, and the impact on Halo Studios is notable.
Over 250 jobs are being cut, including many at Halo Studios. The studio will no longer develop the next mainline Halo game, a responsibility now assigned to a new team within Activision. Halo Studios will remain as a support studio for the series, meaning its role is sharply diminished.
The shift means the franchise’s core development work is moving from a studio with deep history to a new team at a different company. For a series that defined Xbox’s identity for years, that is a significant change.
Why The Reaction Is So Strong
The people responding have deep ties to the franchise. Kiki Wolfkill served as Halo’s executive producer. Marcus Lehto co-created the series. Bonnie Ross led it for years. Brad Hilderbrand worked in PR for the studio.
Their posts suggest a shared sense of loss. Wolfkill’s “Gutted” response captures the personal stakes. Lehto’s surprise reflects a man who knew the studio well enough to feel it sting. Ross’s description of the studio being “essentially shut down” is blunt about the scale of the change.
Hilderbrand’s language is the most direct. He describes the studio as a “jewel being functionally thrown in the garbage,” which is a harsh way of saying a beloved institution is being reduced to a shell. His wish that laid-off staff could find new work is tempered by his view that “the industry is a mess right now and I honestly don’t know what’s going to happen next.”
What The Support Role Means
The distinction between development and support is important. A support studio typically handles maintenance, bug fixes, and operational tasks. It does not build the next major installment of a series.
Halo Studios will remain as a support studio for the series after the layoffs. That means the studio will continue to keep the servers running and manage existing titles, but it will not be the home of the next mainline game. That responsibility moves to a new team within Activision.
The move reflects a broader trend in gaming: studios that once stood alone now operate as parts of larger corporate machines. Halo Studios was a pillar of Xbox’s creative output for years. Now it is a support function.
Who Built The Series
The people speaking up represent different roles in the franchise’s history. Their collective reaction points to a shared sense of pride in what the studio accomplished.
- Kiki Wolfkill’s LinkedIn post was brief and direct. Her “Gutted” response captures the emotional weight of the news.
- Marcus Lehto’s surprise is telling. He was “shocked but not entirely surprised,” which suggests the move was expected but still painful to witness.
- Bonnie Ross’s LinkedIn post described the situation plainly. She said it was “difficult to wake up to the news” that Halo Studios had been “essentially shut down.” That framing — essentially shut down — is a harsh way of describing the studio’s new position.
- Brad Hilderbrand’s LinkedIn post was the most detailed. He called the situation “absolutely brutal to see that studio reduced to a shell that’s only there to keep the servers turned on.” He also expressed concern about the wider industry, noting that “the industry is a mess right now and I honestly don’t know what’s going to happen next.”
What Comes Next For Halo
The next mainline Halo game will be developed by a new team within Activision. The shift raises questions about continuity. Will the new team carry forward the creative vision that defined the series? Will the game feel like a natural continuation of the story, or will it mark a sharp break?
Those answers will depend on who joins the new team and what direction they choose. For now, the focus is on the people losing their jobs and the studio losing its central role.
The Paper’s View
Clay Tribune supports small business and individual workers. This is a corporate decision made by people who owe nothing to anyone reading this. The layoffs are part of a broader reset at Xbox, and the shift of Halo development to Activision is a logical step for a company trying to consolidate its operations.
But the people responding have a different stake. They built the series, and they are watching it move elsewhere. Their grief is real, and their words reflect that.
Where the paper stands
The paper backs Halo Studios and is against the consolidation of its flagship franchise into a new team at Activision. The move treats a beloved studio as a shell rather than letting it remain the home of the next mainline game.
Source material: “Former Halo Devs React To Mass Layoffs And The Activision Takeover: ‘Absolutely Brutal To See That Studio Reduced To A Shell’,” Kotaku.
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