Double Fine Productions cuts 23 roles as it becomes independent from Xbox

Double Fine Productions has reduced its workforce by 25% following its full separation from Xbox earlier this week.

In a statement on social media, CEO and founder Tim Schafer announced that 23 employees were made redundant as the studio “becomes a size [it] can sustain” as it becomes independent.

“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.”

Schafer added: “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.”

A spokesperson for Xbox also stated to Kotaku: “Double Fine fully returned to independent management earlier this week, with their IP, catalogue, and runway for their next games.

“As they begin their next chapter as an independent studio, we look forward to seeing what they create next.”

Microsoft acquired Double Fine in 2019 for $13.2 million.

While part of Xbox Game Studios, Double Fine developed Psychonauts 2, Keeper, and Kiln.

Double Fine was among five studios impacted by significant cuts at Xbox earlier this month, along with Compulsion Games, Ninja Theory, Undead Labs, and Arkane Lyon.

Double Fine and Compulsion Games became independent studios, while Ninja Theory and Undead Labs are negotiating new ownership and funding.

Arkane is undergoing consultation proceedings in France to “review potential strategic options.”

In total, 3,200 positions will be eliminated across Xbox Game Studios. Of these, 1,600 roles were cut on July 6, with additional reductions planned through fiscal year 2027.