Undead Labs Confirms Significant Layoffs Following Independence From Microsoft

Undead Labs has confirmed layoffs affecting a "significant number" of staff members following its transition to full independence from Microsoft.

The studio announced the departures in a LinkedIn post, acknowledging the difficulty of the moment. "Unfortunately, today we are also saying goodbye to a significant number of our colleagues," the post read. "It's difficult to reach this moment knowing that not everyone who helped get us here gets to make the rest of the journey with us."

Undead Labs noted that departing employees are "exceptionally talented developers who have poured years into the State of Decay franchise: solving hard problems, looking after one another, and helping shape both this game and this studio." The studio stated their contributions remain part of both Undead Labs and State of Decay 3 going forward.

The independence came in the wake of Xbox's initial round of studio layoffs in July, which also affected Compulsion Games, now also independent. The restructuring continues to reshape Microsoft's gaming division, with separate reports indicating Ninja Theory has failed to secure a buyer and is entering a consultation process ahead of a proposed closure.