Microsoft is reportedly weighing the closure of Undead Labs, the studio behind the State of Decay series, as part of a broader reset of its Xbox division. The move could affect 110 jobs at the studio, which is currently developing State of Decay 3.
The information, first reported by GamesBeat, lists Undead Labs alongside Double Fine, Compulsion, and Ninja Theory as studios that could be shut down. It marks the first time Undead Labs has been named in such reports.
If buyers are not found, the closures could lead to hundreds of job losses across the affected studios. Members of the Communications Workers of America union, which represents over 3,500 Microsoft workers, held a press conference and stated that the workers "will not be traded as disposable."
The pending layoffs and studio closures are expected to begin in early July after the end of Microsoft's financial quarter. New CEO Asha Sharma's reset plan aims to improve profitability for the Xbox brand, though Microsoft has not publicly commented on the reports.
