Double Fine Cuts 23 Jobs Days After Microsoft Spin-Off, Tim Schafer Says
Double Fine, the studio that Microsoft spun off as an independent company less than a month ago, has laid off 23 employees, citing the need to become a sustainable size to ensure its future.
Key takeaways
- Double Fine cut 23 jobs in the immediate aftermath of its transition to independence.
- The studio said the layoffs are necessary for “the survival” of the company.
- Double Fine also stated its target size is one it can “sustain” as an independent developer.
- Bloomberg journalist Jason Schreier previously put Double Fine’s headcount at 90 before the cuts.
- Compulsion Games, another Xbox studio spun off as an indie, said it needs work about a week later than the Xbox-linked moves.
Double Fine confirms 23 layoffs after going independent
Less than a month after Xbox separated Double Fine Productions into an independent studio, Double Fine announced layoffs affecting 23 employees. The company said the decision was required to protect the studio’s future, framing the move as part of adjusting to its new operating model.
In a message shared on Bluesky, Double Fine explained that the shift to independence means becoming a size it can support long-term. The studio added that the people leaving were all important to its games and culture, and that they would be missed.
Industry context: Xbox restructuring and knock-on studio pressure
The layoffs come in the wake of a broader Microsoft/Xbox restructuring earlier in the month, where 3,200 people were reportedly put out of work as part of changes that avoided shutting the studio down outright. Double Fine’s independence was viewed positively by some in the community, but the studio’s job cuts underscore the risk of sudden transitions without Microsoft backing—especially for a developer known for smaller-scale, offbeat titles that do not necessarily generate blockbuster-level returns in a struggling market.
Compulsion Games, the other Xbox studio reportedly cut loose to operate independently, indicated it needed work just one week after the wider Xbox-linked job moves. Prior to those Xbox layoffs, multiple Compulsion employees had already started searching for new jobs, suggesting they expected their positions to be eliminated.
Double Fine did not disclose how many employees remain after the layoffs. However, Jason Schreier said the studio had 90 employees before the cuts, leaving the post-layoff headcount unclear.
