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Undead Labs studio head Philip Holt did not disclose how many employees were affected by the layoffs that accompanied the studio’s split from Xbox. The studio called the departures “significant,” but neither its statement nor Holt’s October 6, 2026 interview gave a number.
Why Holt did not give a number
Asked about the scale of the cuts by Christopher Dring of The Game Business, Holt said he had been reluctant to share a count because those leaving were friends and colleagues. “I would hate to reduce the impact to those individuals to a number or statistic,” he said.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 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 |
| 4 |
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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 a qualitative description, not a disclosed headcount. No independent count or role-by-role breakdown was established in the cited coverage.
How the layoffs relate to Undead Labs’ split from Xbox
In September 2026, Undead Labs announced that it was becoming an independent, employee-owned studio and said it was also saying goodbye to a significant number of colleagues. VGC reported that employees had bought the company after Xbox sought a buyer. The studio’s statement said departing colleagues had contributed to the State of Decay franchise and its third game.
#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
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- Every decision has lasting consequences In the end, how you survive just might surprise you
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Holt also described keeping staff informed during the uncertain transition. VGC characterized his approach as “irresponsibly transparent”; that phrase reflects Holt’s account of his communication, not an independently measured assessment of employees’ experience.
What the count does—and does not—tell us about State of Decay 3
Game Developer reported that some of the affected employees had worked on State of Decay 3. In the October 6 interview, Holt said the departures did not require the game to be radically rescoped. The Game Business reported that the game was in alpha and had a 2027 target at the time of the interview; that was a stated plan, not a guaranteed release date.
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 cannot fill the gap
Game Informer reported in July 2026 that Xbox planned to cut more than 3,000 roles across the company. That company-wide figure is not an Undead Labs count, and it cannot be used to estimate how many people at the studio were affected.
Quick Recap
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
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