Undead Labs head Philip Holt said he warned employees early that job losses were likely as the studio’s future became uncertain, rather than keeping them in the dark. He described that approach as “irresponsibly transparent,” but the available coverage reports his account—not an independent measure of how staff felt or whether the approach made layoffs easier.
What did Philip Holt tell Undead Labs staff?
In an October 6, 2026 interview with The Game Business, Holt said he brought employees alongside the process as Undead Labs faced uncertainty about its future and the future of State of Decay 3. “Rather than keeping them in the dark and manufacture some alternate reality, I just brought them alongside,” he said.
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State of Decay- Year-One Survival Edition | $35.99 | Buy on Amazon |
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State of Decay 2 - Ultimate Edition - Xbox One (Renewed) | $55.63 | Buy on Amazon |
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Holt said the studio discussed early on that job losses were likely “under probably any scenario.” He described being open about uncertainty around employees’ jobs and the game. “On the day of the layoff, people were prepared,” he said, adding: “Nobody wants to lose a job, but I think people understood the reason.”
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsWhy did he call it ‘irresponsibly transparent’?
Holt used “irresponsibly transparent” to characterize how candidly he shared the uncertainty with staff. He said, “That probably reduced some anxiety.” That is Holt’s assessment of the effect; the interview and subsequent reports do not independently establish how employees experienced the communication or whether it reduced anxiety across the workforce.
#1 Best Overall
- State of Decay 2 is the ultimate open world zombie survival game Four Player Co-Op Multiplayer Establish a base, develop your characters and manage resources to survive in a post-apocalyptic world
- Xbox One X Enhanced with higher resolutions, steadier framerates and better effects
- Every decision has lasting consequences In the end, how you survive just might surprise you
- Pre-order now to get the Amazon exclusive Survivor’s Pack Includes the Zed Swatter melee weapon, an exclusive vehicle and an assortment of survival supplies and abilities - Codes will be received within 7 days of release
How many people left Undead Labs?
Holt did not disclose a layoff count. He said he did not want to reduce friends and colleagues to a number or statistic. He described the departures as significant, but that description is not a headcount; VGC and Game Developer also report no specific number.
What is happening to Undead Labs and State of Decay 3?
The reports describe the studio as moving out of Microsoft/Xbox ownership through a buyout by its employees. The Game Business reports that Holt created Full Measure as the acquisition vehicle and that all Full Measure shareholders are Undead Labs employees. VGC separately reports that the studio is in the process of issuing stock options to staff; those options should not be confused with the existing employee shareholders.
Rank #2
- State of Decay 2 is the ultimate open world zombie survival game Four Player Co-Op Multiplayer Establish a base, develop your characters and manage resources to survive in a post-apocalyptic world
- Xbox One X Enhanced with higher resolutions, steadier framerates and better effects
- Every decision has lasting consequences In the end, how you survive just might surprise you
- Pre-order now to get the Amazon exclusive Survivor’s Pack Includes the Zed Swatter melee weapon, an exclusive vehicle and an assortment of survival supplies and abilities - Codes will be received within 7 days of release
Holt said the team needed to make changes to State of Decay 3 after the layoffs, but that the game was not radically rescoped. VGC reports a 2027 release target; that is a reported target, not a confirmed release date.
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Quick Recap
Best Value
- Unlocking Heroes: Lifeline Roster
- New weapons: Under-barrel attachments and Incendiary Ammo
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Rank #4
- State of Decay 2 Ultimate Edition includes early access to the full game, a code for the original State of Decay: Year One Survival Edition on console, and a code for two add-on content packs: Independence Pack and Daybreak Pack
- Build your community and invite up to three friends to explore an open world filled with hostile zombies Four Player Co-Op Multiplayer Establish a base, develop your characters and manage resources to survive in a post-apocalyptic world
- Model Compatibility: Xbox One;Xbox One X Enhanced with higher resolutions, steadier framerates and better effects
- Pre-order now to get the Amazon exclusive Survivor’s Pack Includes the Zed Swatter melee weapon, an exclusive vehicle and an assortment of survival supplies and abilities - Codes will be received within 7 days of release
Rank #3
- Unlocking Heroes: Lifeline Roster
- New weapons: Under-barrel attachments and Incendiary Ammo
- New Music
- Community Improvements
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