Xbox Game Studios starts layoffs at Compulsion Games

A significant round of layoffs has begun at Xbox Game Studios, with developer Compulsion Games being the first confirmed casualty. Multiple employees from the studio, known for the 2025 action-platformer "South of Midnight," have publicly announced their departures this week, indicating the start of a broader corporate restructuring.

The layoffs were first signaled through social media posts compiled by industry leaker Rebs Gaming, which featured LinkedIn announcements from several Compulsion staff members. Those confirming their exits include game writer and narrative designer Bijan Stephen, principal 3D environment artist Paulette Richardson, senior character concept artist Shelby Dela Cruz, and dialogue designer Sean Miller. Other departing employees range from junior developers to senior designers, with tenures at the studio varying from six months to six years. The exact number of affected employees remains unclear, but the posts suggest cuts across multiple departments.

These layoffs follow recent reports that Microsoft's Xbox division is preparing for a major business reset, potentially involving widespread job cuts and studio closures. According to those reports,...