South of Midnight studio Compulsion Games are allowing staff to openly seek new jobs ahead of possible Xbox layoffs, according to report

Compulsion Games, developer of *South of Midnight* and *We Happy Few*, has reportedly instructed staff to openly pursue external job opportunities, suggesting impending layoffs. The move follows broader speculation about workforce reductions at Xbox, with former employees warning of potential retaliation. Coverage from *Pure Xbox*, *Forbes*, *Windows Central*, *Game Developer*, and *Rock Paper Shotgun* highlights hardware challenges as a key factor in Xbox’s restructuring efforts.

Reports emphasize the studio’s proactive approach—allowing employees to list their availability publicly—rather than traditional layoff notices. *Forbes* frames Xbox’s hardware struggles as the central issue, while *Game Developer* cites concerns over retaliation from former staff. The timing aligns with broader industry shifts, though no official confirmation exists. Watch for formal announcements from Xbox or Compulsion Games, as well as reactions from other studios under Microsoft’s umbrella.

Employee responses and union activity could further clarify the scope and impact of these changes.