Update (June 26): Jason Schreier has since taken to Reddit to explain that Compulsion developers have not officially been laid off yet and are instead being given the opportunity to search for new opportunities elsewhere as they "almost certainly will be losing their jobs then."
He also notes that no Xbox layoffs have happened yet and any rumours of Ninja Theory being closed down already are in fact inaccurate.
Original: It was only last week, the week following the Xbox Games Showcase, that a report broke and claimed Xbox was about to go through a 'bloodbath'-like round of layoffs, where countless developers could lose their jobs and some major studios could be shut down too. One such example of a developer who could be affected was Compulsion Games, the creator of South of Midnight, with the studio being one of the most at-risk teams among the entire Xbox Game Studios family.
Seemingly, the concerns Compulsion was in danger were accurate, as Twisted Voxel has noticed that various Compulsion employees are taking to LinkedIn to share that they have been laid off.
It's unclear just how many developers at the company will be affected by this decision and what it will mean for Compulsion's future, but there were claims that the leadership of the studio were in conversation with Microsoft about spinning off and becoming an independent entity.
If Compulsion layoffs are already happening, it's likely worth being aware that this could signify even more major layoff news in the days and weeks ahead.