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3w ago

Double Fine Cuts 23 Jobs After Returning to Independence From Xbox

The layoffs show how spinning studios out to save costs can force rapid downsizing and put projects and staff at risk.

Tim Schafer, founder and president of Double Fine Productions, speaks during the Microsoft Corp. Xbox event ahead of the E3 Electronic Entertainment Expo in Los Angeles, California, U.S., on Sunday, June 9, 2019. Microsoft introduced its new Xbox console that will be four times more powerful than the current generation Xbox One X, thanks to an AMD processor that allows for 120 frames per second. Photographer: Patrick T. Fallon/Bloomberg via Getty Images
Image: Double Fine Productions
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Overview

  • Double Fine announced that it let go of 23 employees as it completed its return to independent management, a move the studio said was needed to reach a sustainable size.
  • The cuts equal roughly a quarter of Double Fine’s workforce based on reporting that the studio had about 90 staff before the reductions.
  • Xbox confirmed Double Fine has returned to independent management and retained its intellectual property, game catalog, and runway for upcoming projects.
  • The layoffs are a direct consequence of Microsoft’s wider Xbox restructuring that will eliminate about 3,200 roles and spun off or sold several first‑party studios.
  • The change risks short‑term loss of talent and pressure on ongoing projects at Double Fine and highlights that other divested studios face uncertain ownership, staffing, and funding in the months ahead.