Double Fine Productions has laid off 23 employees, a move the studio described as a necessary action for its survival as it navigates its new status as an independent company. This reduction in staff comes just three weeks after Xbox released Double Fine from its backing as part of a wider restructuring.
In a statement shared on Bluesky, Double Fine explained that its transition to independence necessitates becoming a "size that we can sustain." The studio acknowledged the impact of the departing employees, stating, "The people we are losing were all important. They all made an impact on our games and culture, and they will be missed." The company expressed its commitment to supporting those affected.
The layoffs, while unfortunate, are not entirely surprising given the current industry climate and Double Fine's history of developing offbeat games with modest sales. Xbox's decision to allow Double Fine to become independent was met with some positive reception, but the sudden shift without Microsoft's financial support presents significant challenges for the studio.
This situation echoes that of Compulsion Games, another studio previously backed by Microsoft that was also spun off as an independent entity. Compulsion Games reportedly began seeking work shortly after its transition. Prior to the recent layoffs, numerous employees at Compulsion were understood to be seeking new employment, possibly anticipating job losses.
It remains unclear how many employees are still with Double Fine following the cuts. Prior to these layoffs, the studio reportedly had 90 employees, according to reporting by Bloomberg's Jason Schreier. The 23 individuals who were let go represent a significant portion of the development team.