Xbox begins a new wave of layoffs and affects the South of Midnight studio

The affected personnel have begun voicing their situations on platforms like LinkedIn and social networks, stating they are open to new opportunities in the market. These accounts refrain from revealing internal details of the restructuring or the exact number of team layoffs, focusing solely on the urgent search for new positions. It is heartbreaking to see skilled workers losing their livelihood right on the cusp of launching a promising project, a cowardly corporate stance that has become routine in the brand's management. Some of these posts clarify that the contract terminations are set for June 30, 2026.

Information from unofficial channels suggests that the public announcement of these mass layoffs is expected to occur on July 1, 2026. The upper management of Xbox remains silent, without issuing any official statement or justification for these cuts.

The first affected by this new wave of layoffs was Compulsion Games, the award-winning developer currently working on the highly anticipated South of Midnight.

The management of the console brand continues to display an alarming insensitivity to their internal studios. Dismantling talented teams while demanding high-quality games is an inexplicable contradiction that undermines the company's own future. We will continue to monitor developments to understand the severity of the impact on the game's production pipeline.