Developers at Compulsion Games, the studio behind the upcoming title South of Midnight, are actively seeking new employment. This surge in "open to work" notifications on professional networking sites has fueled speculation about impending layoffs within Microsoft's gaming division, although studio leadership has reportedly permitted employees to search for other roles.
According to reports, this move by Compulsion Games leadership is a proactive measure, allowing employees to seek new positions in anticipation of potential job losses. While not an official layoff announcement, the situation has caused surprise among some staff, with at least one principal level designer describing it as an "unexpected turn of events." Approximately a dozen employees out of the studio's roughly 90-person team have indicated they are looking for new work, a significant figure for a studio of its size.
These developments align with broader concerns about a "Xbox Reset" initiative reportedly underway, which may involve significant restructuring and staff reductions across several Microsoft-owned studios. Earlier this month, reports suggested that studios including Double Fine and Ninja Theory, alongside "several other studios," were at risk. Executives at Microsoft have previously acknowledged that the company may have overextended its resources through a series of studio acquisitions in recent years.
Industry observers anticipate that any forthcoming layoffs could occur in early July, following the conclusion of Microsoft's fiscal year on June 30. This timing mirrors past events, such as the layoffs and project cancellations that took place around July 2 of the previous year.