• 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

20 Forgotten RPGs That Nobody Remembers

20 Forgotten RPGs That Nobody Remembers

20 Games Where You’re Actually NOT HUMAN

20 Games Where You’re Actually NOT HUMAN

10 Open World Games That NEVER REALLY END

10 Open World Games That NEVER REALLY END

SONY CLOSES MAJOR STUDIO, HEAD OF XBOX RETIRES & MORE

SONY CLOSES MAJOR STUDIO, HEAD OF XBOX RETIRES & MORE

20 Best Recent Games That Are NOW DIRT CHEAP

20 Best Recent Games That Are NOW DIRT CHEAP

10 Upcoming Games With INSANE Graphics

10 Upcoming Games With INSANE Graphics

Resident Evil Requiem: 10 BIGGEST CHANGES

Resident Evil Requiem: 10 BIGGEST CHANGES

20 AA Games We CAN'T WAIT To Play

20 AA Games We CAN'T WAIT To Play

50 BEST Sci-Fi Games You SHOULD NOT Miss

50 BEST Sci-Fi Games You SHOULD NOT Miss

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

Sidebar

Recent Posts

  • Rumor: Microsoft Adding Subs For World Of Warcraft, Minecraft, Fallout, ETC To Game Pass
  • Rumor: GTA V & GTA Online Will Remove Ability To Use Snapmatic For Profile Pics
  • Game Key Reseller Lists GTA 6 Price At Over $ 100 (Is It A Placeholder?)
  • Grand Theft Auto: Vice City Stories Is Getting A Native PC Port From The Community
  • Ubisoft Has Deployed Their “Teammates” Generative AI Project To Their Developers

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