Double Fine undergoes layoffs after Xbox split

Double Fine is one of several studios that recently split from Xbox earlier this year. Now operating independently once again, the studio has announced a round of layoffs as it adjusts to its new financial reality.

As announced via a message from studio founder Tim Schafer on BlueSky, Double Fine has let go of 23 members of staff. Schafer explained that the transition back to independence has forced the studio to reduce its size to something it can sustainably support.

In the statement, Schafer wrote:

“Today, Double Fine Productions let go of 23 members of our staff. As a small, tightly-knit team, these actions are not taken lightly. Only the survival of our studio would ever make us consider such a painful action. Our transition to becoming an independent company also means becoming a size that we can sustain. The people we are losing were all important. They all made an impact on our games and culture, and they will be missed. We are committed to supporting each affected person as best as we can, and we thank them for their hard work and commitment to the creative spirit we cherish here at Double Fine.”

Double Fine was one of several studios divested by Xbox during its recent shake‑up, which also saw thousands of employees laid off across the wider gaming division.

KitGuru Says: Double Fine has always operated with a small team, so losing 23 people is significant. Hopefully the studio can stabilise quickly and continue working on the kinds of inventive projects it’s known for.

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