Microsoft confirmed Tuesday it is cutting 268 positions across its gaming division while handing future development of its hallmark Halo franchise to Activision.

The moves mark the latest phase of an operational overhaul that Xbox leadership began over the summer as Microsoft restructures its gaming business. Xbox Chief Content Officer Matt Booty outlined the cuts in an internal staff memo titled “Continuing Our Reset,” later published on Xbox Wire. Booty said the cuts affect Halo Studios, other first-party developers, and Xbox Game Studios management.

“The actions completed since July, inclusive of the studio divestitures, bring us roughly…

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