A new rumor about Microsoft games has players worried about Halo Studios. According to the Xbox report, the team behind Halo Infinite might be facing some deep challenges behind the scenes after a shakeup in leadership.Halo Studios Loses 17-Year Art Director Amid Leadership ShakeupScreenshot: MicrosoftThis latest rumor first picked up steam online after veteran Halo Art Director of 17 years, Glenn Israel, recently left the company abruptly. However, what makes this concerning is a message that Israel left on his LinkedIn profile. In the post, the developer says he will reveal more about the situation next year when it’s “safe to.” He also seemingly alludes to his departure with the studio not being on good terms.“I know that the state of our industry seems dire. But never forget that you are free to choose. No illusion of security nor promise of wealth or fame or power is worth trading away your health, your dignity, your ethics, or values. And no one can force you to. Stay strong, take evidence when necessary, and find where you belong.” Although the post is quite vague, a lot of what is said here doesn’t sound good. Glenn Israel talking about ethics and values is specifically notable. However, it’s unclear if he’s talking about Microsoft in this regard.Screenshot: MicrosoftAdding fuel to the fire is an update from reporter Rebs Gaming. The gaming insider claims he has confirmed with sources inside the company that Halo Studios is having leadership issues. In an October 8 video, the YouTuber explained that he will reveal more details about the situation once sources have okayed him to share specific things. However, Rebs Gaming pointed out that 9 out of 10 developers on Halo Infinite’s art team have now departed the studio. Glenn Israel’s departure also comes a month after Halo Studios’ Chief of Staff, Melissa Boone, also left.Halo Studios Leadership Problems Spark Layoff FearsScreenshot: MicrosoftFollowing the recent shakeup of leadership at Halo Studios, many players worried that we could see more layoffs. On social media sites like X and Reddit, fans of the franchise vented their concerns about the situation. Most of the panic is due to the massive Xbox layoffs back in July 2025, which saw Microsoft let hundreds of employees go without warning. However, Halo Studios in particular was one of the teams impacted by the layoffs.As if that wasn’t concerning enough, there was a recent Xbox leak just this month, where an insider claimed that Microsoft plans to have more layoffs next year. “The company is also said to be planning a massive round of layoffs heading into Q1 2026.” While Microsoft didn’t respond to these specific claims, they did release a statement saying the rumor about the next-gen Xbox console being canceled was not true. So take all of this with a major grain of salt.While Rebs Gaming doesn’t mention anything about layoffs, the rumors of Halo Studios having major leadership issues are still dire, nonetheless. Even more so when you consider that Microsoft just rebranded 343 Studios in 2022 to Halo Studios. So, for this new team to already be having internal challenges this early into their creation is concerning, to say the least.The post Is Halo Studios Heading for More Layoffs? New Xbox Leak Panics Microsoft Players. appeared first on VICE.