## Navigating Corporate Transition: How Undead Labs Managed Staff Through Independence
The journey for Undead Labs-the creative force behind the *State of Decay* franchise-has been anything but smooth lately. Following Microsoft’s July announcement regarding the divestiture of the studio from the Xbox Game Studios umbrella, the team behind the highly anticipated *State of Decay 3* has been forced to navigate a period of significant organizational upheaval. This shift toward independence has been marked by the difficult reality of workforce reductions, a challenge that leadership addressed through a strategy of radical transparency.
### Prioritizing Communication During Organizational Change
As the studio prepared to transition away from its parent company, Philip Holt, the head of Undead Labs, recognized that the uncertainty surrounding the move could be paralyzing for his staff. Rather than shielding employees from the harsh realities of the restructuring, Holt opted for a policy of total honesty. In a recent discussion with *The Game Business*, he emphasized that keeping the team informed was his primary objective, even when the news was difficult to deliver.
This approach culminated in the layoffs that occurred in late September. By choosing to be upfront about the likelihood of job losses early in the process, Holt aimed to mitigate the “rumor mill” effect that often plagues companies undergoing major structural changes.
### The Philosophy of “Irresponsible Transparency”
Holt’s leadership style during this transition was rooted in empathy. He noted that when employees feel like they are losing agency over their professional futures, anxiety naturally spikes. By providing consistent updates, he hoped to alleviate the fear of the unknown.
“I didn’t want to manufacture an alternate reality,” Holt explained. “I brought them alongside the process. I tried to put myself in their shoes-when you don’t know if your role is secure or if the project you’ve poured your heart into will ever reach the finish line, the lack of information is often worse than the truth.”
### The Broader Context of Industry Volatility
The situation at Undead Labs reflects a wider trend within the gaming industry, where even established studios are facing the pressures of corporate consolidation and subsequent divestment. According to industry tracking data, the gaming sector saw over 10,000 layoffs in 2023 alone, with 2024 continuing to show significant volatility as major publishers re-evaluate their portfolios.
For Undead Labs, the focus now shifts toward maintaining the momentum of *State of Decay 3* while establishing their new identity as an independent entity. By fostering a culture of open dialogue, leadership hopes to retain the core talent necessary to deliver the next chapter of their flagship survival series, proving that even in the face of corporate restructuring, clear communication remains the most vital tool for team stability.
