Xbox Layoffs Cut Halo Cinematic Director After 11 Years

Josh Daniels, a Halo Studios cinematic director, has been laid off by Microsoft just days after receiving a promotion. Daniels was among the 268 employees affected by the latest round of Xbox layoffs.

He confirmed the news on LinkedIn, where he wrote that being “promoted and laid off in the same week is pretty wild.”

Josh Daniels Spent 11 Years Under Xbox

Daniels’ LinkedIn profile shows an 11-year career under the Xbox umbrella. Before joining Halo Studios in July 2024 as a cinematic director, he spent almost nine years at Turn 10 Studios, contributing to the Forza Motorsport games.

At Halo Studios, Daniels oversaw cinematic direction, story presentation, and in-game cutscenes. His recent work included Halo: Campaign Evolved, which received a lukewarm player response following its release earlier in 2026.

The latest layoffs come as Xbox continues what has been described as a corporate “reset” under Xbox CEO Asha Sharma. The restructuring has involved studio changes, layoffs, and franchise shifts, including the move of Halo development under Activision.

Microsoft’s Xbox Layoffs Come Amid Wider Business Changes

Microsoft has already cut more than 1.6K Xbox employees in 2026, with another 1.6K cuts reportedly planned before the fiscal year ends. At the same time, Xbox is seeking growth while operating with fewer studios and developers.

Xbox’s stated ambition under Sharma is to reach more than one billion people each day. That target comes against a backdrop in which Microsoft has not publicly disclosed current Xbox console sales and previously reported 500M monthly users across its platforms in 2025.

CEO of Microsoft, Satya Nadella, discussed the strategy with journalist Alex Heath in a Sep 25, 2026, Sources interview. Nadella stated that he feels “fantastic” about Xbox’s intellectual property (IP) and studio portfolio, while acknowledging the need to improve the business model.

“There’s some amount of streamlining the team is doing,” Nadella said, adding that Xbox needs a sustainable model capable of reaching more people across PC and Xbox. He also added that the company expects Xbox to achieve growth in the next fiscal year and that Sharma and her team are executing that plan.

Daniels’ departure therefore comes as Xbox simultaneously reshapes its workforce, studio structure, and franchise strategy while pursuing a larger audience and a more sustainable gaming business.