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Age of Empires developer World's Edge hit with layoffs following move to Activision

What happened
Based on GamesIndustry.biz · Sep 23, 2026

Age of Empires studio World's Edge confirmed layoffs affecting nearly half its staff following its transition to Activision as part of Xbox’s restructuring.

Age of Empires developer World's Edge hit with layoffs following move to Activision
GamesIndustry.biz — GamesIndustry.biz
Key points
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World's Edge studio laid off 'just under half' of its staff following its transition to Activision.
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Xbox announced 268 total job cuts across multiple studios as part of its restructuring plan.
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Ninja Theory will close while Undead Labs became an independent studio under the restructuring.
Key numbers
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Former creative director Adam Isgreen, a 16-year Microsoft veteran, announced his departure alongside many colleagues on Reset Era and LinkedIn.

World's Edge, the studio behind Age of Empires, confirmed layoffs impacting 'just under half' of its workforce after transitioning to Activision. Former creative director Adam Isgreen, a 16-year Microsoft veteran, announced his departure alongside many colleagues on Reset Era and LinkedIn. Isgreen expressed disappointment over the cuts and reflected on the studio’s future plans, hoping the remaining team could carry them forward. The layoffs occurred as part of Xbox’s broader restructuring initiative, which also included the transfer of Rare and the Halo franchise to Activision.

Activision president Rob Kostich welcomed the incoming studios, including World’s Edge, Rare, and Halo, emphasizing their legacy and global fanbase. He framed the transition as an honor and responsibility, acknowledging the studios’ decades-long impact on gaming. The announcement followed Xbox’s update detailing the restructuring, which aimed to integrate these teams into Activision’s operations. The move reflects Microsoft’s strategy to consolidate first-party studios under its gaming division.

In total, 268 positions were eliminated across Halo Studios, other first-party developers, and Xbox Game Studios as part of the restructuring. Ninja Theory is set to close, while Undead Labs became an independent studio. The layoffs at World’s Edge represent a significant reduction in staff, disrupting ongoing projects and team dynamics. The affected employees include long-serving developers who contributed to the studio’s identity and output.

The restructuring also highlighted redundancies at other studios, with Ninja Theory and Undead Labs undergoing major changes. Ninja Theory’s closure marks the end of an era for the studio behind titles like Hellblade, while Undead Labs transitioned to independence. World’s Edge’s layoffs underscore the broader impact of Xbox’s reorganization on its first-party ecosystem, reshaping the future of its game development teams.

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