Double Fine lays off about a third of its employees
Independent game studio Double Fine has eliminated approximately 23 positions from its workforce of roughly 90 employees, implementing cuts as it transitions to standalone operation following its separation from Microsoft's Xbox division. Leadership attributed the decision to ensuring the studio's survival during this critical shift in its corporate structure.
The layoffs represent part of a broader wave of reductions sweeping through the gaming industry following Microsoft and Xbox's own significant workforce reductions earlier in 2026. Despite the studio's recent success with titles such as Keeper and Kiln, Double Fine determined that restructuring was essential following its July announcement to spin out from Xbox Game Studios, where it had been based since 2019.
- Double Fine laid off approximately 23 of its 90 employees as it completes its separation from Microsoft's Xbox division
- The cuts reflect broader industry reductions following recent Microsoft and Xbox layoffs that have affected multiple gaming studios
- Despite releasing well-received recent titles, the studio determined downsizing was necessary to ensure survival as an independent operation