Yesterday, Undead Labs announced it had completed its separation from Xbox and was now a fully independent operation. Just mere hours later, however, the State of Decay developer returned with news that a significant number of employees had been let go.

In the same message from Xbox CCO Matt Booty detailing another 286 job cuts across various studios and management, Undead Labs confirmed State of Decay 3 would still launch on Xbox Game Pass despite becoming an independent company.

The Seattle-based developer joined Xbox Game Studios all the way back in 2018, but had partnered with Microsoft as early as 2011. Philip Holt, studio head of the freshly independent studio, shared a message with the community stating:

"Independence brings us closer to our community and lets us focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us...We’re enormously grateful for our years as part of XBOX and for everything that relationship has made possible"

Following this, Undead Labs took to LinkedIn to share some additional news, that despite the positivity surrounding its independence, that they were " also saying goodbye to a significant number of our colleagues".

"Unfortunately, today we are also saying goodbye to a significant number of our colleagues. It's difficult to reach this moment knowing that not everyone who helped get us here gets to make the rest of the journey with us.

They are exceptionally talented developers who have poured years into the State of Decay franchise: solving hard problems, looking after one another, and helping shape both this game and this studio. Their work remains part of Undead Labs and part of State of Decay 3, regardless of where their careers take them next."

Despite the shift and cuts, State of Decay 3 is still in active development at Undead Labs, with a closed beta happening sometime before the end of the year. If you're interested in participating, you can sign up to playtesting via this link.

Are you looking forward to State of Decay 3? What do you make of the layoffs? Tell us your thoughts in the comments section below.