The latest round of Xbox layoffs has reportedly begun, with Compulsion Games said to be among the first studios affected.
Multiple developers from the Montreal-based studio have shared posts on LinkedIn indicating they have been laid off. Compulsion Games is best known for We Happy Few and the recently released South of Midnight.
The reported job cuts follow an internal “business reset” memo from newly appointed Xbox CEO Asha Sharma, which reportedly outlined efforts to improve Microsoft’s gaming division after it recorded a 3% profit margin.
According to reports, Compulsion Games could face a major restructuring or workforce reductions affecting more than 90 employees. The studio’s future is said to remain uncertain, with leadership reportedly in discussions with Microsoft over the possibility of spinning off as an independent company.
The same reports claim other Xbox studios, including Ninja Theory and Double Fine, are also considered at risk as Microsoft’s latest restructuring continues.
Microsoft has not officially confirmed the reported layoffs at Compulsion Games or commented on the studio’s future.
