Undead Labs, the studio behind the State of Decay franchise, has laid off a significant number of employees less than a day after announcing its transition to an independent, employee-owned company. This follows a period of mass layoffs affecting Microsoft-owned studios, with Undead Labs being among the five studios initially slated for separation in July.
In a LinkedIn post, the developers stated, "Unfortunately, today we are also saying goodbye to a significant number of our colleagues. 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." They emphasized that the departing staff are "exceptionally talented developers" who have contributed years to the State of Decay franchise, and their work will remain a part of the studio and State of Decay 3.
The studio expressed its regret in contributing to the ongoing layoffs within the games industry and offered to connect departing employees with other studios seeking talent. They described the laid-off developers as individuals they "would hire again in a heartbeat."
This situation mirrors that of other studios that have recently gained independence from Xbox. Double Fine, creators of Psychonauts, laid off 23 employees, a quarter of its staff, in late July. Compulsion Games, developers of South of Midnight, are now seeking work as a co-development or support studio and are working to regain rights to their games. The future of Hellblade developers Ninja Theory appears uncertain after failed attempts to sell the studio. Arkane, the studio behind Dishonored, is currently undergoing consultations with Xbox regarding its future.
Solidarity is extended to all developers affected by these layoffs at Undead Labs, with hopes for their swift re-employment.