• 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

Ready or Not - Before You Buy

Ready or Not - Before You Buy

10 Game Moments That Broke Every Rule You Expected

10 Game Moments That Broke Every Rule You Expected

The Story Behind 2025's Biggest Gaming Disaster

The Story Behind 2025's Biggest Gaming Disaster

10 Most BADASS Video Game Weapons of All Time

10 Most BADASS Video Game Weapons of All Time

10 Things Developers REGRETTED Adding To BIG GAMES

10 Things Developers REGRETTED Adding To BIG GAMES

20 Games That HUMILIATE You For Playing BADLY

20 Games That HUMILIATE You For Playing BADLY

EA SETS INSANE TARGET FOR BATTLEFIELD 6, SUBNAUTICA 2 IN TROUBLE & MORE

EA SETS INSANE TARGET FOR BATTLEFIELD 6, SUBNAUTICA 2 IN TROUBLE & MORE

10 Best Games Where The STORY SUCKS

10 Best Games Where The STORY SUCKS

Tony Hawk's Pro Skater 3 + 4 - Before You Buy

Tony Hawk's Pro Skater 3 + 4 - Before You Buy

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

Sidebar

Recent Posts

  • Top Battle Royale Games Still Dominating the Charts in 2025
  • Call of Duty 2027 Starts A New Modern Subfranchise
  • Mortal Kombat 2 Trailer Is A Must-Watch For Johnny Cage Fans
  • Call of Duty: Black Ops 7 Release Date Leaked Online?
  • The Father Of Silent Hill Says Their Next Game Won’t Be A Slitterhead Sequel

Copyright © 2025 · Gameranx · All Rights Reserved · Powered by Mai Theme