Newly independent Double Fine has confirmed the layoff of 23 developers as part of an effort to ensure the studio's survival. The cuts follow the developer's return to independence after avoiding closure under Xbox.
Quick Facts
- Affected Employees: 23 staff members let go from Double Fine Productions.
- Reason for Cuts: To sustain the studio and ensure its long-term survival following its transition to an independent company.
- Broader Context: Double Fine was one of five first-party Xbox studios impacted by Microsoft layoffs in July 2026.
Tim Schafer Confirms Staff Reductions
Studio head Tim Schafer confirmed the job cuts via a social media post, noting that the decision was not taken lightly by the tightly-knit team. According to Schafer, only the survival of the studio would make the team consider such an action, and the transition to an independent company required shrinking to a sustainable size.
"The people we are losing were all important," Schafer stated, adding that every departing staff member made an impact on the studio's games and culture. Double Fine is currently working to support the affected employees as best as it can.
Wider Microsoft Industry Impact
The restructuring at Double Fine is part of a wider wave of cuts across Microsoft's gaming division. At the start of July 2026, five first-party Xbox studios were impacted. Alongside Double Fine, South of Midnight developer Compulsion Games also returned to independence. Meanwhile, Hellblade studio Ninja Theory and State of Decay 3 team Undead Labs were sold to unknown buyers.
The industry adjustments form part of a broader total of 1,600 Microsoft employee job losses in July, with another wave of 1,600 cuts scheduled to follow before July 2027.