• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Gameranx

Gameranx

Video Game News, Lists & Guides

  • News
  • Features
  • Platforms
    • Xbox Series X
    • PS5
    • Nintendo
  • Videos
  • Upcoming Games
  • Guides

Undead Labs Reportedly Hit With Layoffs

July 2, 2025 by Dennis Patrick

State of Decay 3 might have fewer developers working on the game.

I’m sure you’ve heard the latest slew of reports and rumors about Microsoft. There were rumors leading up to today that layoffs would be happening within the video game division. It turns out that’s true, as we’re seeing more reports today surfacing on who might be affected. One of the latest reports to have emerged is from Undead Labs.

Thanks to Reddit, we’re learning that senior reporter Ethan Gach for Kotaku has messaged on Bluesky, alerting followers that Undead Labs is now dealing with layoffs. From what they heard, it’s uncertain at the moment just how many staff members are being let go from the studio. Of course, it might be a minimal hit at Undead Labs. We’ll have to wait and see the extent of the layoffs from the studio, if the report proves to be true.

Hearing State of Decay 3 studio Undead Labs has layoffs, not yet clear how widespread. The meetings are showing up on people's calendars on a rolling basis.

— AmericanTruckSongs10 (@ethangach.bsky.social) 2025-07-02T16:06:05.759Z

Of course, this news comes not long after we learned that the studio has reached its largest size ever. We know that the developers have been working on State of Decay 3. That said, we haven’t seen that game in a while, so it’s still a mystery as to what that installment would offer players. Furthermore, this will be the first game the studio releases since it was acquired by Microsoft in 2018.

Undead Labs won’t be the only studio to face layoffs. We had reports suggesting that Rare was dealing with layoffs, as well as the cancellation of their upcoming Everwild game. Likewise, earlier today, reports surfaced that King and ZeniMax Media were also expected to deal with layoffs. There have even been reports that things might be even more dreadful behind the scenes at Xbox.

At any rate, we’ll have to wait for some of the dust to settle before we begin to see confirmation of which studios had layoffs. The same can be said about the state of the various game projects they were working on.

Share this post:

FacebookTwitterLinkedInPinterest

Recent Videos

10 Final Bosses That RUINED Other Bosses For Us

10 Final Bosses That RUINED Other Bosses For Us

GTA 6 MOST EXPENSIVE GAME EVER? & MORE

GTA 6 MOST EXPENSIVE GAME EVER? & MORE

Mixtape - Before You Buy

Mixtape - Before You Buy

10 Good Games That SHOULD NOT HAVE FAILED

10 Good Games That SHOULD NOT HAVE FAILED

007 First Light - 10 Things You NEED TO KNOW

007 First Light - 10 Things You NEED TO KNOW

20 Longest Single Player Games of The LAST 5 YRS.

20 Longest Single Player Games of The LAST 5 YRS.

10 Brand NEW RPGs That EXCITE US

10 Brand NEW RPGs That EXCITE US

20 Game Franchises RUINED By Publishers

20 Game Franchises RUINED By Publishers

10 WEIRD Gaming Stories of April 2026

10 WEIRD Gaming Stories of April 2026

Category: UpdatesTag: Microsoft, State of Decay 3, Undead Labs, xbox series x

Sidebar

Recent Posts

  • Ubisoft Shared A Cosplay Style Guide (With New Lore!) For Assassin’s Creed Black Flag Resynced’s Edward Kenway
  • Jacob Navok: Bungie’s $ 765 Million Impairment Is Too Small, More Is Coming Next Quarter
  • Rockstar Teases A Summer Update For GTA Online – Could This Connect To GTA 6?
  • Sony Has Not Yet Decided When They Will Launch PlayStation 6 And At What Price
  • Nintendo Switch 2 Goes Up In Price To $ 499 Before It Hits Its 1st Year

Copyright © 2026 · Gameranx · All Rights Reserved · Powered by Mai Theme