When Xbox confirmed the latest round of layoffs from its year-long Xbox Reset, it said that "a small team" would remain at Halo Studios to support Activision in future Halo development. Notable Halo influencer and leaker La Sinity claims, per an insider source, that less than 20 employees remain at Halo Studios after the layoffs.

In addition, Age of Empires developer World's Edge has been placed under Activision. ResetEra user Tempus Chaoti posted that "just under half the studio was let go." Former Studio Creative Director Adam Isgreen confirmed layoffs on LinkedIn, and Senior Software Engineer Andrew Martz corroborated that the studio's next project was cancelled.

It has also been reported that the entire Halo Championship Series team was laid off. Several Halo Studios members working on reviving Halo Digsite—a project to make cut content available to modders—also fell victim, ending the project after over a year of work.