Microsoft's recent company-wide layoffs have impacted Halo Studios, with at least five employees reportedly fired. The layoffs, part of broader 'organizational shifts' within the Xbox division, were announced in an email from Microsoft Gaming CEO Phil Spencer, citing the need to 'increase agility and effectiveness.' Affected Halo Studios employees were informed of their termination during a Teams meeting, where severance packages were discussed. Sources indicate tension existed within the studio even prior to the layoffs. The studio is estimated to still have 200-300 employees.