Double Fine Lays Off 23 Amid Xbox Downsizing

Indie game studio Double Fine has recently undergone a reduction in its workforce, parting ways with 23 of its approximately 90 employees. This decision comes despite the studio's recent efforts toward unionization and its plan to become an independent entity. The layoffs were announced on Bluesky by the company, with Tim Schafer stating it was a painful but necessary action for the studio's survival.

Double Fine, recognized for its acclaimed titles such as Psychonauts, Grim Fandango, and Costume Quest, has been active with recent releases including Keeper in 2025 and Kiln in early 2026. The studio's workforce reduction is seen as a ripple effect from the extensive layoffs that began at Xbox and Microsoft this summer. Earlier in July, Double Fine announced its return to independence, concluding its affiliation with Xbox Game Studios which started in 2019. This situation highlights the ongoing challenges within the gaming industry as a result of widespread job cuts.