Double Fine Productions has laid off 23 employees, representing approximately a quarter of its staff, studio head Tim Schafer confirmed in a statement. This decision follows the studio's recent transition back to independent operations after its split from Xbox.
"Today, Double Fine Productions let go of 23 members of our staff," Schafer stated. "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."
Schafer emphasized the impact of the departed employees, noting that "The people we are losing were all important. They all made an impact on our games and culture, and they will be missed." The studio is committed to supporting those affected with resources and assistance.
An Xbox spokesperson confirmed the completion of Double Fine's return to independent management earlier in the week. This transition included the return of the studio's intellectual property, catalog, and funding for future projects. "Double Fine is now fully independent and manages its own operations," the spokesperson added, expressing anticipation for the studio's future work.
Journalist Jason Schreier reported that Double Fine's staff numbered around 90 employees prior to the layoffs. The departures include individuals who had been with the studio for many years. The studio's split from Xbox also saw other developers, such as Compulsion Games, regain their independence, while Undead Labs and Ninja Theory were acquired by new owners.