After Xbox Split, Double Fine Lays Off 23 Employees in 'Painful Action'
The studio said the cuts were necessary as it becomes independent again, and Xbox has laid off 1,600 people with another 1,600 planned.
- Double Fine announced 23 layoffs yesterday as the studio transitions back to independent management after leaving Xbox, downsizing to a size it can sustain.
- Xbox CEO Asha Sharma announced a massive restructuring earlier this month, prompting the spin-off of studios including Double Fine and Compulsion Games due to profitability concerns.
- The cuts impact around 25.5% of the roughly 90-person team at The San Francisco-based studio, famously founded by LucasArts alum Tim Schafer.
- An Xbox spokesperson confirmed Double Fine returned to independent management earlier this week, retaining its IPs, catalog, and runway for future games.
- Xbox continues its massive shake-up, having laid off 1600 individuals one month ago with another 1600 planned throughout the coming year to return to growth.
14 Articles
14 Articles
'We Look Forward to Seeing What They Create Next' — Xbox Speaks Out After Double Fine Lays Off 25 Percent of Staff in Transition to Independent Status
Double Fine, best known for creating the 2005 platform game Psychonauts, has laid off 25.6% of its staff three weeks after Xbox’s massive restructuring efforts were revealed.The studio announced the layoffs on July 28, 2026, confirming that this downsizing was a direct result of becoming an independent company after Xbox unloaded them as part of its own restructuring earlier this month.“As a small, tightly-knit team, these actions are not taken …
NewsGaming.net Double Fine fired 23 people, three weeks after his return to independence forced by Xbox What was unfortunately to happen. While the general atmosphere was too much turned towards thanks (or praise) to Xbox for having had the humble delicacy of not purely and simply closing the studios that bothered him in the perspective of the crazy growth aimed by the direction, reality hits on the face. Double Fine, freshly re-independent afte…
Double Fine Productions has announced the dismantling of 23 jobs, and the decision is made shortly after the announcement that the studio will re-establish itself independently after seven years under Xbox's roof. According to journalist Jason Schreier, Double Fine employed around 90 employees before the layoffs. read more
Coverage Details
Bias Distribution
- 75% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
