Undead Labs leadership avoids disclosing layoff figures following Xbox independence transition
Following Undead Labs' transition to employee ownership and independence from Xbox, studio head Philip Holt declined to publicly disclose how many staff members were affected by restructuring efforts. Holt emphasized his commitment to transparent communication with remaining employees throughout the difficult transition period, framing the layoffs as necessary consequences rather than arbitrary decisions. The studio established a corporate entity called Full Measure to grant all employees shareholder status and upside participation in the company's future value.
Undead Labs underwent a significant structural transformation when it separated from Xbox's ownership umbrella. The studio's leadership created Full Measure, a holding company designed to convert all remaining employees into shareholders with potential financial participation in the company's future earnings. This arrangement represented an attempt to align worker interests with the company's long-term success during a vulnerable transition period.
The studio's independence came as part of Microsoft's broader Xbox reorganization, which eliminated 3,200 positions across multiple divisions. Among the five studios divested during this wave, Undead Labs and two others successfully negotiated independence deals, while Ninja Theory entered closure proceedings following unsuccessful acquisition negotiations.
The disclosure dynamics around layoff figures may affect how affected workers and industry observers perceive transparency in corporate restructuring. When companies limit public disclosure of workforce reductions, it could shape external understanding of restructuring severity and impact the broader narrative around studio independence transitions. Conversely, individual privacy considerations and the emotional weight leaders place on affected workers' dignity may inform decisions to withhold specific numbers, potentially influencing how similar situations are handled by other studios navigating independence or closure.