Double Fine Productions has laid off 23 employees, just weeks after the Psychonauts developer returned to independent ownership following Xbox’s major restructuring.
Founder Tim Schafer confirmed the decision in a statement shared by the studio, saying the reductions were necessary to ensure Double Fine could continue operating after separating from Xbox Game Studios.
“Today, Double Fine Productions let go of 23 members of our staff,” Schafer said. “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.”
He added, “The people we are losing were all important. They all made an impact on our games and culture, and they will be missed. 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.”
The layoffs come around three weeks after Microsoft divested Double Fine as part of the largest restructuring in Xbox’s history. The wider overhaul saw Microsoft cut 3,200 jobs across its gaming division while allowing several first-party studios to become independent or seek new ownership.
Double Fine, best known for the Psychonauts series, retained its intellectual property and ongoing projects when it left Xbox. According to the studio, the workforce reduction is intended to resize the company into a sustainable independent developer following the end of Microsoft’s financial backing.
