SUNDAY, SEPTEMBER 27, 2026|No. 16667
Business · Technology

Microsoft Xbox Continues Workforce Reductions Amidst Strategic Restructuring

Microsoft's Xbox division has implemented further layoffs, impacting 268 employees, including a cinematic director recently promoted.

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Microsoft's Xbox logo displayed on a screen.
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Microsoft Xbox layoffs: Halo Cinematic Director fired days after promotion — ‘Pretty wild’

Josh Daniels was among the 268 employees affected by the latest round of layoffs at Microsoft's Xbox division.

Based on his LinkedIn profile, Josh Daniels, an Xbox veteran, has worked under the Xbox umbrella for 11 years.

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The gaming industry's turbulent phase continues to impact long-standing employees. In a stark example of corporate unpredictability, Josh Daniels, a cinematic director at Halo Studios, lost his job just days after receiving a promotion.

Daniels was among the 268 employees affected by the latest round of layoffs at Microsoft's Xbox division.

Taking to LinkedIn, he shared the abrupt turn of events:

“Promoted and laid off in the same week is pretty wild,” Daniels wrote, expressing his disbelief over the timing of his termination. “I’m one of the many hit by the Halo Studios layoffs. 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”.

Promoted and laid off in the same week is pretty wild.

I’m one of the many hit by the Halo Studios layoffs. 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.

Xbox restructuring and Halo's future

Daniels’ termination was part of a massive restructuring effort at Xbox. Chief Content Officer Matt Booty recently announced 268 job cuts across Halo Studios, other first-party developers, and central Xbox management teams.

Microsoft is currently executing a broader plan to eliminate 3,200 jobs across its gaming division.

These layoffs coincide with a major strategic shift for the Halo franchise. Xbox has handed over the development of the next Halo game to Activision.

While Halo Studios will continue to support existing games and the player community, Activision will now take the lead on the flagship series. The removal of a core cinematic director indicates that future Halo games might take a drastically different creative approach.

Who is Josh Daniels?

Based on his LinkedIn profile, Josh Daniels, an Xbox veteran, has worked under the Xbox umbrella for 11 years. Before joining Halo Studios, he spent eight years and 10 months at Turn 10 Studios, where he contributed to the Forza Motorsport games.

He joined Halo Studios as a cinematic director in July 2024. In this capacity, he oversaw the creative vision, story direction, and in-game cutscenes.

His recent works include ‘Halo: Campaign Evolved,’ which received lukewarm reception from players upon its release earlier this year, according to IGN.

Daniels studied at Arizona State University from 2005 to 2007.

PAN's pipeline reviewed approximately 1 open sources for this article. No human editor reviewed this article before publication.

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