Promoted and Laid Off in the Same Week: Inside Halo Studios’ Turbulent Restructuring

Amid a sweeping wave of layoffs sweeping through Xbox’s first-party studios this week, Halo Studios’ former cinematic director Josh Daniels revealed a striking personal twist: he was promoted and laid off within the same week. The revelation arrives as Activision takes over development of the next Halo game, marking another seismic shift in the franchise’s future. Daniels, who had spent more than a decade with Xbox, confirmed the news on LinkedIn, describing the situation as “pretty wild.”

The broader shakeup was formalized by Xbox Chief Content Officer Matt Booty, who announced 268 layoffs spanning Halo Studios, other first-party studios, and the XGS management and central functions layer. Daniels, who had been anointed cinematic director at Halo Studios in 2024, found himself caught in the crossfire of a restructuring that signals a decisive change in how the franchise will be built going forward.

A Role Removed, a Direction Reimagined

The elimination of the cinematic director position is more than a personnel casualty—it is a creative statement. A cinematic director traditionally oversees a title’s creative vision, narrative direction, and in-game cutscenes, among many other responsibilities. The removal of such an integral role suggests that the next Halo game is taking a drastically different approach than its predecessors.

Daniels had worked on Halo: Campaign Evolved, a title that was met with a lukewarm reception from players upon its release earlier this year. His departure underscores the uncertainty surrounding the series’ creative identity as the franchise transitions hands.

“Promoted and laid off in the same week is pretty wild. I’m one of the many hit by the Halo Studios layoffs,” he wrote. “I’ll be taking some offline time today, but very much would love to talk to anyone looking for Cinematic Direction or Production roles. Feel free to get in touch if anything looks like I might be a fit.”

Josh Daniels

His willingness to reach out for future roles reflects the reality that many veteran creatives are now navigating an uncertain job market as studios reorganize around shifting priorities.

Activision at the Helm

While Halo Studios still exists and will “continue supporting the Halo community and games in-market,” Activision is now leading the charge on the series’ next game. The minds behind Call of Duty making a Halo game was certainly not on anyone’s bingo card, and while opinions are largely mixed, many fans are cautiously optimistic and open to anything that might get the franchise out of its current state.

The partnership represents a significant realignment of the Xbox ecosystem, blending Activision’s live-service expertise with the Halo brand’s storied legacy. For the community, the question is no longer whether the collaboration will happen, but whether it will deliver the direction players have longed for.

Looking Ahead

For now, the future of Halo remains unwritten, and the industry watches closely to see what the new leadership structure produces. The broader impact of Xbox’s restructuring extends well beyond Halo: Undead Labs, another studio affected by the shakeup, revealed today that its next game, State of Decay 3, is still in active development and is slated for a closed beta later this year, with a release date set for 2027.

As these changes settle, one thing is clear: the era of Halo’s old guard is giving way to a new chapter, and the decisions made in the coming months will define the franchise for years to come.

Virginia is IGN’s News Editor. With ten years of experience reporting on games and entertainment, she’s got a storied background in the fighting game community, influencer news, and viral online trends. Find her on Twitter at @TheeMissGlaze.