Last night, Microsoft continued its restructuring of the Xbox brand, resulting in 268 employees across various studios losing their jobs. Many of those affected appear to be senior or high-level staff; a notable example is Juan Vaca, the Narrative Director at The Coalition—the studio behind Gears of War. Vaca confirmed he was among those laid off in this latest round of cuts, having worked at the company for four years.
The timing of this news is particularly brutal, as Vaca had publicly celebrated the game’s completion just last week. The title is set to launch in early access next week—five days ahead of the global release. While Microsoft’s plans for The Coalition following the launch of Gears of War: E-Day remain unclear, the loss of such key talent makes it difficult to feel confident about the studio’s future.
More related content:
Gears of War: E-Day Campaign Hands-On Preview | Gamescom 2026
Gears of War: E-Day Campaign Hands-On Preview | Gamescom 2026
This is not the only instance of bizarre timing regarding these layoffs. Josh Daniels, the Cinematic Director at Halo Studios, was also let go—just one day after receiving a promotion. However, the future of Halo Studios is much clearer. Activision will take over future development of the Halo franchise, while Halo Studios is undergoing significant downsizing. A small team will remain to support existing Halo titles, while a brand-new team is being assembled under Activision to develop the series’ next mainline entry.