Former Halo Leaders Mourn the Demise of Halo Studios as Microsoft’s Layoffs Leave a Promoted Employee Fired in the Same Week

Former Halo Studios leaders Bonnie Ross and Kiki Wolfkill have publicly voiced their condolences for the studio’s laid-off staff, joining a growing chorus of grief after Microsoft’s sudden and sweeping downsizing of the franchise’s home yesterday. In a move that has sent shockwaves through the gaming community, the layoffs reduced Halo Studios to what Ross described as a “small” support team, while simultaneously handing the franchise’s future to Activision, where a dedicated unit has been assembled to build the next Halo title. The cuts came so abruptly that one former Halo Studios employee, cinematic director Josh Daniels, found himself promoted and then laid off within the same week.

Daniels, who has since shared his experience on LinkedIn, captured the surreal nature of the event in a post that quickly circulated through the community. “Promoted and laid off in the same week is pretty wild,” he wrote, adding that he was “one of the many hit by the Halo Studios layoffs.” His departure was part of a broader wave of job losses across Xbox Game Studios, with reports indicating that 268 people lost their jobs across Halo Studios, other unnamed first-party studios, and management layers. The sheer speed of the process left many employees with little notice, and the emotional toll has been felt far beyond the studio’s walls.

A Franchise Rebuilt from the Ground Up

The most significant structural change emerging from the cuts is the transfer of Halo’s development to Activision. According to the reports, Microsoft has created a “purpose-built” team to develop the next Halo title, one that operates separately from Activision’s flagship Call of Duty franchise. This decision marks a dramatic shift in how the franchise will be handled going forward, and it raises a host of questions about the future direction of a series that has defined Xbox’s identity for over a decade.

“It was difficult to wake up to the news that the Halo Studio is essentially being shut down today, with only a small number of roles remaining.”

Bonnie Ross, former head of Halo and founder of 343 Industries

Ross, who founded 343 Industries in 2007 and has overseen the development of every Halo game since Halo: Reach in 2010, took to LinkedIn to express her dismay at the studio’s fate. The studio was rebranded as Halo Studios two years ago, and under her leadership it became the beating heart of Xbox’s first-party development. In her statement, Ross acknowledged the breadth of the losses, noting that the cuts would impact creatives, designers, engineers, producers, artists, narrative and audio specialists, data insights, operations, community leaders, and franchise teams alike.

“Hundreds of incredibly talented team members are being impacted,” she wrote. “My thoughts are with every Halo team member and with the broader Xbox teams affected. For teams looking to hire, you will not find a more dedicated, capable, or community-driven group of people. Their talent and heart run deep.”

Voices of Support and Solidarity

Kiki Wolfkill, another enormously influential figure in Halo’s recent history who led 343 Industries for a number of years, echoed Ross’s sentiments while offering a more personal appeal to her former colleagues. Describing herself as “gutted to hear the news today,” Wolfkill extended her support to everyone affected by the layoffs, both within Halo Studios and across Xbox more broadly.

“If I can be helpful in any way—making an introduction, offering advice, being a sounding board, or simply listening—please, please reach out. My door is open.”

Kiki Wolfkill, former head of 343 Industries

Wolfkill’s willingness to offer direct assistance reflects the deep sense of loss felt by those who worked on the franchise. The two women, who together shaped the modern era of Halo, have become symbols of the community’s solidarity in the face of what many are calling an unprecedented dismantling of one of gaming’s most beloved studios.

The Scale of the Cuts

While Microsoft has not officially confirmed the exact number of employees let go at Halo Studios, unconfirmed reports—such as one on Windows Central—suggest that the layoffs number in the hundreds. LinkedIn has become a key source of information in the aftermath, with a flood of posts from former employees offering clues about the extent of the cuts. One individual noted that they were laid off “along with the majority of Halo Studios,” while another simply wrote that “Halo Studios ‘shut down’ today,” language that underscores the finality many feel about the studio’s future.

The broader picture reveals just how far-reaching Microsoft’s restructuring has been. Yesterday’s Xbox cuts also appear to result in the impending closure of British studio Ninja Theory, alongside a wave of organisational changes that reshaped the entire Xbox Game Studios ecosystem. Obsidian has moved under Bethesda’s control, while Playground and Turn 10 have merged. Undead Labs has gone independent, and Rare, World’s Edge, and Halo have all shifted under Activision’s control. Undead Labs and World’s Edge have also reportedly suffered major layoffs as a result of the restructuring.

Looking Ahead

As the dust settles on one of the most significant moments in Xbox’s history, the industry watches closely to see how these changes will play out. The transfer of Halo to Activision represents a fundamental realignment of the franchise’s future, and the departure of so many of the people who built its modern legacy raises difficult questions about what comes next. For the employees affected, the coming weeks will be defined by uncertainty, but for the community, the outpouring of support from Ross, Wolfkill, and Daniels signals that the passion behind Halo endures—no matter how the studio’s structure may change.

Whether the “purpose-built” team at Activision can carry the franchise forward remains to be seen, but one thing is clear: the people who poured their hearts into Halo will be remembered, and their voices—both in grief and in solidarity—will continue to echo through the gaming world for years to come.