Undead Labs studio head Philip Holt has not disclosed how many employees were affected by the layoffs tied to the studio’s separation from Xbox. The studio called the departures “significant,” but gave no exact count.
Why Holt did not give a number
In an interview with The Game Business published October 6, 2026, Holt said he was reluctant to share the figure because the departing employees were friends and colleagues. “I would hate to reduce the impact to those individuals to a number or statistic,” he told Christopher Dring.
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|---|---|---|---|---|
| 1 |
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State of Decay 2 | $37.32 | Buy on Amazon |
| 2 |
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State of Decay 2 - Xbox One (Renewed) | $27.19 | Buy on Amazon |
| 3 |
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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 described the departures as a “significant number of people leaving the company.” That is the studio’s qualitative description, not a disclosed headcount.
What is known about the departures
Undead Labs announced in September 2026 that it was becoming an independent, employee-owned studio, while also saying goodbye to a significant number of colleagues. The company’s statement said those leaving had contributed to the State of Decay franchise and its third game. Undead Labs’ announcement did not specify how many employees were affected.
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Game Developer reported that some affected employees had worked on State of Decay 3. Neither that account nor the cited interview provides a role-by-role breakdown or an independently established count.
What the change means for State of Decay 3
At the time of the October 6 interview, Holt said State of Decay 3 was in alpha and had a target release in 2027. He said the transition did not require radically rescoping the game. That was the project plan described at interview time, not a guarantee that the release date will hold.
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
Why Xbox-wide layoff figures do not answer the question
Game Informer reported in July 2026 that Xbox planned to cut more than 3,000 roles across the company. That figure covers Xbox-wide planned reductions, not layoffs at Undead Labs, and cannot be used to calculate the studio’s undisclosed count.
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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Holt’s account of communicating with staff
Video Games Chronicle reported that Holt described his approach to keeping staff informed during the uncertain transition as “irresponsibly transparent.” He said he preferred to bring employees alongside him rather than keep them in the dark. Those remarks describe Holt’s stated approach; they do not establish how employees experienced the communication.
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