'Only the survival of our studio would make us consider such a painful action': Tim Schafer announces Double Fine layoffs just 3 weeks after Xbox cut it loose

Less than one month after Xbox spun off Double Fine Productions as an independent studio, the developer has laid off 23 employees, a move it says was necessary to ensure "the survival of our studio."

"Our transition to becoming an independent company means becoming a size that we can sustain," Double Fine said in a message shared on Bluesky. "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 at Double Fine are sad but not entirely unexpected. Xbox earned plaudits from some corners of fandom for allowing Double Fine to go independent as part of its July restructuring that saw 3,200 people put out of work, but the reality is that without Microsoft backing, the sudden transition to independence for a studio famed for its offbeat, modestly selling games—especially given the current state of the industry—is fraught.

Compulsion Games, the other studio Microsoft cut loose as an indie, put out the word that it needs work just one week later. Prior to the Xbox layoffs earlier this month, numerous Compulsion employees began looking for new jobs, presumably on the assumption that their positions at the studio would likely be lost.

It's not known how many employees remain at Double Fine following the layoffs, but Bloomberg's Jason Schreier said the studio had 90 employees prior to the cuts.

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