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Undead Labs boss "reluctant to share" number affected by layoffs: "I would hate to reduce the impact to those individuals to a number or statistic"

What happened
Based on GamesIndustry.biz · Oct 09, 2026

Undead Labs boss Philip Holt avoided disclosing layoff numbers after the studio’s independence from Xbox, emphasizing the human impact of job losses and the team’s shared stake in the transition.

Undead Labs boss "reluctant to share" number affected by layoffs: "I would hate to reduce the impact to those individuals to a number or statistic"
GamesIndustry.biz — GamesIndustry.biz
Key points
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Undead Labs became independent from Xbox through a management buyout led by Philip Holt.
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All employees, including those laid off, became shareholders in the new corporate entity, Full Measure.
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The restructuring was part of a broader Xbox layoff initiative affecting 3,200 employees across five studios.

Philip Holt, studio boss at Undead Labs, described the layoffs following the studio’s independence from Xbox as a "total heartbreak," refusing to quantify the number of affected employees. He emphasized the emotional toll on staff and the difficulty of reducing their experiences to mere statistics. Holt acknowledged the pain of job losses but stressed that transparency helped mitigate uncertainty among remaining and departing workers.

Holt explained that early, direct communication prepared employees for the inevitability of layoffs under any scenario. He noted that informing staff on the day of the layoffs, though painful, provided clarity and reduced anxiety. The approach aimed to foster understanding rather than resentment toward leadership or the company’s future.

To facilitate the transition, Holt established Full Measure, a corporate entity under which all employees became shareholders. He highlighted that the studio’s value stemmed from the contributions of both current and former team members, ensuring shared ownership and potential upside for all involved.

Undead Labs pursued independence through a management buyout, citing strong interest and proximity to revenue for *State of Decay 3*. Holt confirmed Microsoft approved the move, part of a broader restructuring that saw five studios divested, including Compulsion Games and Double Fine, while Arkane Lyon remains in consultation and Ninja Theory faces closure.

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