It's not layoffs, but you can see them from here: Numerous Compulsion Games employees are looking for new jobs
As reports of potential layoffs at several Microsoft-owned game studios continue to circulate, a number of developers at South of Midnight studio Compulsion Games have revealed that they are actively seeking new employment opportunities. Posting "open to work" messages on LinkedIn is a common practice among game industry professionals looking for new roles—and, unfortunately, it can also serve as an early indicator of upcoming layoffs.
According to Bloomberg's Jason Schreier, the situation at Compulsion Games is somewhat unique. In a recent Reddit post, Schreier noted that studio leadership had granted employees permission to search for new jobs, as they likely anticipated layoffs. This move, while seemingly proactive, appears to have surprised some within the team. Principal level designer Mike Sklavounos described the development as "an unexpected turn of events," highlighting the suddenness of the change.
Eurogamer reported that at least a dozen employees from Compulsion Games have indicated they are exploring new job prospects. Considering the studio's relatively small size—approximately 90 employees—this represents a significant portion of its workforce. The sudden increase in job seekers also raises concerns about a broader wave of layoffs across Microsoft's gaming divisions. Earlier reports suggested that Double Fine, Ninja Theory, and several other studios could be at risk of closure as part of an "Xbox Reset" strategy being implemented by Microsoft CEO Asha Sharma and Chief Content Officer Matt Booty. In an open letter, the pair admitted that Microsoft had "over extended" itself through a series of recent studio acquisitions, a move that has now led to potential job losses for thousands of employees.
Industry insiders expect the layoffs to occur in early July, following the conclusion of Microsoft's fiscal year on June 30. This timing mirrors Microsoft's previous actions in 2025, when the company laid off thousands of employees and canceled multiple video game projects on July 2 of that year. As the situation unfolds, the gaming community is watching closely, hoping for clarity and support for those affected.
