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

> **Newsylist Open Intelligence Dossier** · First detected: 2026-06-27 11:43 UTC · Category: Technology · Sources: 5 · Current Velocity: 2.8

## Executive Summary
Staff at Compulsion Games are being permitted to seek new employment amid reports of layoffs at the Xbox-owned studio.

## Intelligence Brief
Compulsion Games, the developer of South of Midnight and We Happy Few, has begun an unknown number of layoffs. Reports indicate that staff are being allowed to openly seek new job opportunities as these cuts occur.


Coverage from Windows Central and Rock Paper Shotgun emphasizes the studio's current situation, while Pure Xbox notes developers are marking themselves as 'open to work.' Additionally, Game Developer reports that former Xbox employees have warned of potential retaliation regarding rumored layoffs. Future developments depend on the scale of the layoffs and how Xbox addresses its core hardware challenges, as highlighted by Forbes.

## Verified Facts & Key Claims
### Which games are associated with Compulsion Games?
The studio is behind South of Midnight and We Happy Few.

### How many employees are being laid off?
According to Windows Central, the number of layoffs is currently unknown.

### What warnings have been issued by former staff?
Former Xbox employees have warned of the potential for retaliation in the face of rumored impending layoffs.

## Key People, Organizations & Locations
Compulsion Games, Former Xbox, South of Midnight, Xbox Layoffs Seemingly Begin As Devs Reveal They're Open To Work, Core Problem To Solve Above All Else Is Hardware, South of Midnight and We Happy Few

## Multi-Source Evidence Table
| Source Outlet | Headline | Published (UTC) | Verification URL |
|---|---|---|---|
| Pure Xbox | Xbox Layoffs Seemingly Begin As Devs Reveal They're 'Open To Work' | 2026-06-26 09:30 | [Source Link](https://news.google.com/rss/articles/CBMiowFBVV95cUxNajhNRVRPY1RTYVVqWmFpUkJ0QkpmeHN3TXZDWllKNzM1OFpZdnVaTks1cU55OFZIWkl2RUx5WE9HWHVrMmJvYUFBclAzVXB5dHdzNXFxbV96aHEzOVN0N0xfM2haSUlFc0FiRHZIbXA1cXhzenVRNUZwSEF0Wks2anV1MHVEREtEMTcwSTdmVjRPbVE0QWF3SW5MbF9qOG9YQmZJ?oc=5) |
| Forbes | Xbox’s Core Problem To Solve, Above All Else, Is Hardware | 2026-06-26 09:30 | [Source Link](https://news.google.com/rss/articles/CBMiqAFBVV95cUxPWFBzVVBtbVpkUUpyWS0zU0xnWTB6eThRZjJFTElDS0Zqck1JWWw5TG8wSFFkR2N1Sk0yNk04c3VYTFlybFVEd2RaWm15UkNiZ2VvM0xWVUJxWDc2M2FETjh1OGFhYXVXVmRuNGYtXzBTbWRNejZjTHRrU1lybVJkOW9VUm9McVJjRmtTZmpveGo5ZjlBNXNaQUg5Mi05YV9mUTZmdEwtUk0?oc=5) |
| Windows Central | Compulsion Games begins an unknown number of layoffs at the studio behind South of Midnight and We Happy Few | 2026-06-26 09:30 | [Source Link](https://news.google.com/rss/articles/CBMilAFBVV95cUxOT0hZRFU5QjJPanhIS05kV1AwdGxEdFpueGxRMG1rYjB5SHJkRGVHQWREaWxGNkRqNlY4eGtYNWoxSmFOY1JObUhHLVlMRlhzeHRidnFpeUM5ZFoyLTZUa1BPSGNtd0VxcTk4MlZPNTROQ2VNSkhHUXh6SS1NcnhieWpfd1p6OExiY1pVNlRtMXpaZDE0?oc=5) |
| Game Developer | Former Xbox employees warn of potential for retaliation in rumored impending layoffs | 2026-06-26 09:30 | [Source Link](https://news.google.com/rss/articles/CBMiwAFBVV95cUxQamtvRmhJaVB2YkpzclJfVk91WjVTdWpDTzN5b3dRcnRWRXZGMFV3c3JITDktZ3AzX0FEd2pyWjdIUUprMFZTV1lIZTdETUNFUThETGMtZTdaaFVNaVY0bG8xTmFMbmtiSXM1cVdzYzE0aXV1dENVd2phd0Rub2VFWHIxY1hvdUVfdHRxaXhjQzRCQkE5YWlNbnEwRnNXRlV4bHRGc01MU3RlRGRlUk84WXVPWVNObzAxbGk2Uk5HNUE?oc=5) |
| Rock Paper Shotgun | South of Midnight studio Compulsion Games are allowing staff to openly seek new jobs ahead of possible Xbox layoffs, according to report | 2026-06-26 09:30 | [Source Link](https://news.google.com/rss/articles/CBMi_AFBVV95cUxNLWJiRHVkUUlwWHR4bUdkZS12cEp6cmcyWEhiUDktVFRTMmc4Yl90RXhQUnFONUxXcXpRNERhSHY5ZXQwQkNkZFZEU0J0SEg0TDE2MG5fN2Q1UjY4a28xRS00NDV6R3lBZmlHVkJCT3h6U3NXUU1tWFFYRjFYekw3OEhRb2UxVUdKQUxPY05WSUJqdTdLa1pYc0ZCdkdnalUwcVZMNXBQSExFUi11ZjlJemc1UDJFMmdadTA1amxSWWdRaTlsclp3YkRONVlBT3NySkhmRjNLMWljSmNCeC16bGRXY3BOUXVueldTRzFXNy1QcW1KUTAyN05aaHQ?oc=5) |

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*Canonical Source: https://www.newsylist.com/trend/2026-06-27/south-of-midnight-studio-compulsion-games-are-allowing-staff-to-openly-seek-new*
*Synthesized by Newsylist Open Intelligence Engine under E-E-A-T journalistic standards.*