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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.
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State of Decay 2 | $37.99 | Buy on Amazon |
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State of Decay 2 - Xbox One (Renewed) | $23.67 | Buy on Amazon |
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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) | $55.70 | Buy on Amazon |
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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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#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
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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.
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 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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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
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- 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
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- New weapons: Under-barrel attachments and Incendiary Ammo
- New Music
- Community Improvements
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