Halo Studios has reportedly been reduced to approximately 30 employees following Microsoft’s latest layoffs, leaving a small team supporting existing games while Activision develops the franchise’s next installment.
According to leaker Rebs Gaming, the remaining staff have two immediate priorities: handling Halo Fest and delivering a December update for Halo: Campaign Evolved. Employees reportedly expect their positions to be eliminated once those commitments are fulfilled.
Here’s my new video report: https://t.co/AwTopaY99Q
A source informed me that no one from Halo Studios went to Activision and the remaining employees are not in contact with Activision. Also, Xbox has a final plan for Halo Studios: Manage Halo Fest and finish/release a Campaign Evolved content update with Firefight. Plans could change if the remaining team isn’t able to complete it. #Halo
— Rebs Gaming (@Mr_Rebs_) October 7, 2026
The report suggests Halo Studios could be approaching the end of its operations. However, Xbox has not publicly confirmed the reported headcount, update plans, or expectations of further layoffs.
A Small Team Remains Under Pierre Hintze
Rebs Gaming cited an unnamed source who disputed claims that Halo Studios leadership had moved to Activision.
“So far, not one single Halo Studios person has gone to Activision,” the source said, according to the leaker.
Several leadership employees were reportedly laid off, while studio head Pierre Hintze and Chris Matthews remain. Hintze is said to oversee a 30-person team dedicated to supporting games already on the market.
A screenshot from Halo 2: Anniversary (2020), 343 Industries
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“Pierre’s 30 person inmarket title team is not part of Activision, and there is no current plan to shift any of them over,” the source added.
If accurate, that account indicates the remaining Halo Studios team has no involvement in developing the franchise’s next installment.
Microsoft has already confirmed the broader division of responsibilities. In his September 22 announcement, Xbox chief content officer Matt Booty said Activision would develop the next Halo title through a new team operating separately from Call of Duty.
“A small team at Halo Studios will continue supporting the Halo community and games in-market,” Booty stated.
The announcement covered 268 eliminated roles across Halo Studios, other first-party studios, and central management functions. Microsoft did not identify how many of those cuts came from Halo Studios specifically.
A December Update With Fewer Developers
Rebs Gaming’s source claims Booty instructed the remaining employees to prioritize Halo Fest and a Campaign Evolved content update.
The update reportedly includes Firefight and Theater modes, with December remaining the target release window. According to the source, Firefight is already fully playable in internal studio playtests, and staff continue testing the update daily.
A screenshot of Master Chief via Halo YouTube
However, the layoffs have reportedly eliminated entire development teams, including audio and user interface staff. Those departures could affect the update’s scope, with some features potentially changed or cut before release.
A playable mode does not necessarily mean an update is ready to ship. The reported loss of those departments leaves questions about what the remaining team can deliver by December.
Halo Fest is also reportedly scheduled for that month. Rebs Gaming says employees expect their positions to be eliminated after the event and update are completed, but Xbox has not announced a closure date for the studio.
Activision Builds Halo’s Next Chapter
Microsoft’s recent restructuring removed Halo Studios from responsibility for the next major game. The developer, formerly known as 343 Industries, adopted its current name in 2024.
Activision President Rob Kostich has also said existing Call of Duty teams will not simply be assigned to Halo. Instead, the publisher is assembling a dedicated development group for the franchise.
A screenshot from Halo Infinite (2021), 343 Industries
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The transition follows an underwhelming Steam launch for Campaign Evolved. As reported in July, the remake peaked at 25,376 concurrent players and had fallen to around 7,500 when that article was published. Those figures reflect Steam activity and do not establish the game’s total audience or sales across platforms.
If Rebs Gaming’s account is accurate, Halo Studios’ remaining commitments could mark the end of an era. For fans dissatisfied with the franchise’s direction, the prospect of a new team offers reason for cautious optimism.
Activision now has an opportunity to rebuild confidence in Halo and recapture the qualities that made the series successful. New leadership cannot guarantee better games, but a fresh start gives the franchise an opportunity to regain the trust of players disappointed by its recent direction.
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