Double Fine Productions lays off 23 employees, reducing workforce by 25% after separation from Xbox

Double Fine Productions has laid off 23 employees, marking a 25% reduction in its workforce after separating from Xbox. CEO Tim Schafer announced the layoffs, stating the studio must become a size it can sustain as it transitions to independence.¹²³⁴⁵

In his statement, Schafer expressed the difficulty of the decision, saying, "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." He acknowledged the contributions of those affected, 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 layoffs come as Double Fine fully returns to independent management, regaining control over its intellectual property and future projects. A spokesperson for Xbox remarked, "As they begin their next chapter as an independent studio, we look forward to seeing what they create next." This restructuring is part of a broader trend, with a total of 3,200 positions being eliminated across Xbox Game Studios as the gaming industry faces ongoing challenges.⁶

Double Fine's commitment to supporting affected employees was also highlighted, with Schafer stating, "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."