Overview
- Multiple Compulsion Games employees began posting 'open to work' notices and leaving the Montreal studio, with outlets reporting layoffs and departures on June 25, 2026.
- The exits span junior and senior roles across almost all departments, based on LinkedIn posts and reporting that cite numerous affected staff.
- Reporters link the cuts at Compulsion to a broader Xbox 'reset' under new leadership that is intended to improve profitability amid rising costs and weaker Game Pass economics.
- Compulsion, acquired by Microsoft in 2018 and known for We Happy Few and South of Midnight, would likely need a buyout or an external deal to remain independent if Microsoft decides to divest.
- Industry coverage says formal decisions on the wider round of studio restructurings are expected after Microsoft completes its fiscal‑year review at the end of June, so more announcements could follow soon.