Double Fine Cuts 23 Jobs After Leaving Microsoft

Double Fine, the long-running San Francisco game studio led by Tim Schafer, has carried out a significant round of layoffs after completing its return to independence from Microsoft. Studio head Schafer said 23 employees were cut this week, a move he tied directly to the company’s need to right-size for its next chapter.

What Double Fine says led to the cuts

Schafer framed the layoffs as a difficult but necessary step for the studio’s survival, emphasizing that Double Fine operates as a small, closely connected team.

Tim Schafer said Double Fine laid off 23 people this week.
Those 23 roles represent about 25% of the studio’s total headcount.
Schafer linked the timing to Double Fine regaining independence from Microsoft.
He said the studio needs to “scale down” to reach a size the team can sustain.
Schafer added that every affected staffer will be supported “as best we can.”

Independence after Microsoft’s Xbox “reset”

The studio’s separation from Microsoft followed a broader corporate shift inside the Xbox business. Earlier in the year, Microsoft announced a drastic reset led by Xbox CEO Asha Sharma, which included divesting multiple studios.

Microsoft’s reset included the divestment of five studios, including Double Fine.
Microsoft stated that Double Fine would keep its IP, catalog, and “runway” for its next games as part of the separation.

Double Fine’s timeline with Microsoft

Double Fine was founded in 2000 and remained independent until Microsoft acquired the company in 2019. Schafer previously expressed concerns about the impact of the deal on the studio’s identity and culture.

Double Fine became independent in 2000 and stayed that way until Microsoft’s purchase in 2019.
In 2019, Schafer said he was “very concerned” about selling to Microsoft, fearing it might not preserve Double Fine’s culture and identity.
Schafer later said he accepted the deal based on an assumption that Double Fine would be “left alone” to do its own work and remain independent.

Games Double Fine released under Xbox

During the period Double Fine operated within Microsoft’s Xbox ecosystem, it released multiple titles. The studio’s catalog during that time includes: