State of Decay developer Undead Labs becomes self-owned with employee shareholders after layoffs

Undead Labs, the developer known for the State of Decay franchise, has undergone a significant structural change. The studio is now self-owned, with employees holding shares in the company.

The shift follows a difficult period for the team. A studio executive acknowledged being "irresponsibly transparent" with staff during layoffs, aiming to make the process easier to accept. The transparency was intended to help employees understand the reasoning behind workforce reductions.

The move to self-ownership marks a new chapter for the studio. By placing ownership in the hands of employees, Undead Labs has restructured itself as a self-owned entity. This change comes after the studio's separation from Microsoft, which acquired Undead Labs in 2018 as part of its expansion into live-service games.

While the exact number of layoffs was not disclosed, the restructuring has clearly impacted the team. The studio's future projects remain uncertain, though the new ownership model suggests a renewed focus on independence and employee-driven development.

State of Decay 2, the studio's most recent major release, launched in 2018. Since then, the team has supported the game with ongoing updates and content. The implications of the ownership change on future development are yet to be seen.