XBOX's Restructuring Reportedly Triggers Layoffs at Compulsion Games

As things stand, it seems there is no sign of Xbox slowing down its sweeping restructuring plans. Just days after reports suggested several first-party studios were fighting for their future, the latest wave of layoffs has reportedly reached another Xbox Game Studios team.

Layoffs have reportedly started at Compulsion Games

According to multiple social media posts from employees and a compilation shared by Rebs Gaming on X, Compulsion Games, the studio behind South of Midnight, has reportedly been hit by layoffs as Microsoft’s ongoing Xbox Reset continues.

While Xbox has yet to issue an official statement, several developers have publicly indicated that they are looking for new opportunities after their roles were affected.

The reported layoffs follow earlier claims made in Bloomberg report, where it was mentioned that Compulsion Games was among three Xbox Game Studios currently in discussions with Microsoft in an effort to avoid complete closure. While the studio may not see an immediate shutdown, significant job losses were still expected, and employees had already been permitted to seek work elsewhere during the process.

That context now appears to be lining up with what is unfolding publicly. Several current and former Compulsion Games employees have updated LinkedIn profiles or posted messages indicating they are available for work, suggesting the studio has begun reducing staff.

Microsoft hasn’t officially confirmed layoffs at Compulsion Games or disclosed how many employees may have been affected. Until the company comments publicly, the exact scale of the reductions remains unclear. If we come across anything, we will update this article.