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Undead Labs Boss Says He Was “Irresponsibly Transparent” About Layoffs

Undead Labs head Philip Holt says he brought employees into the studio’s uncertainty and warned that layoffs were likely. No layoff count was disclosed.
Length2 min Posted Quest giverVGSources Team
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Undead Labs studio head Philip Holt says he told employees early that job losses were likely as the studio’s future remained uncertain. He described his approach as “irresponsibly transparent,” but the account is his own: available coverage does not independently establish how staff felt or whether the candor eased anxiety across the workforce.

What did Holt tell Undead Labs staff?

In an October 6, 2026 interview with The Game Business, Holt said he chose to bring employees into discussions about the studio’s uncertainty rather than keep them in the dark. “Rather than keeping them in the dark and manufacture some alternate reality, I just brought them alongside,” he said.

He said he warned staff early that job losses were likely “under probably any scenario,” and spoke with them about uncertainty affecting their jobs and the future of State of Decay 3. Holt said employees were prepared on the day of the layoffs and understood the reason. “Nobody wants to lose a job, but I think people understood the reason,” he said.

Why did he call it “irresponsibly transparent”?

Holt used the phrase to characterize how candidly he shared difficult information while the studio’s future was unresolved. He said, “That probably reduced some anxiety.” That is Holt’s interpretation, not an independently measured outcome: the interview and reports of it do not establish how transparency affected staff sentiment across the workforce.

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How many people did Undead Labs lay off?

Holt did not disclose a headcount. He said he did not want to reduce friends and colleagues to a number or statistic. He described the departures as significant, but that remains an attributed characterization rather than a published count. Video Games Chronicle and Game Developer also report that no number was provided.

What is happening to Undead Labs and State of Decay 3?

Coverage describes Undead Labs as transitioning out of Microsoft/Xbox ownership through a buyout involving the studio’s employees. The Game Business reports that Holt created Full Measure as the acquisition vehicle and that its 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 existing shareholder status.

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Holt said the team had 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; it is a reported target, not a confirmed launch date.

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