South of Midnight studio Compulsion Games are allowing staff to openly seek new jobs ahead of possible Xbox layoffs, according to report

Compulsion Games, the studio developing South of Midnight, is reportedly allowing staff to openly seek new employment ahead of anticipated Xbox layoffs expected in July. While no layoffs have been officially confirmed, the studio’s leadership has granted employees permission to post about job opportunities on LinkedIn and pursue external positions without penalty.

This move reflects widespread expectations of significant upheaval at Xbox, including potential studio closures and substantial job cuts across the organization. Compulsion Games is among several studios whose future remains uncertain. Several developers from the studio have already begun signaling their availability to the broader gaming industry.

The proactive approach by studio leadership appears designed to help employees secure alternative work before any official announcements. By allowing staff to actively seek positions externally now, management is acknowledging the precarious situation facing the studio and its workforce. The reported layoffs are expected to occur in July as part of a major Xbox restructuring.

This situation reflects ongoing volatility in the gaming industry, where studios and publishers regularly face economic pressures leading to workforce reductions. The transparency shown by Compulsion Games stands in contrast to some industry practices where significant layoffs occur with minimal advance notice to affected employees.

Sources