Double fine lays off 25.6% of staff amid xbox restructuring

Double Fine, the studio behind the cult classic Psychonauts, has terminated 25.6% of its workforce just three weeks after Xbox's major restructuring announcement. On July 28, the company confirmed the layoffs were a direct result of becoming an independent entity following its unloading by Microsoft as part of the gaming giant's own overhaul.

Xbox bids farewell to double fine as independent studio

As a small, tightly-knit team, these actions were not taken lightly, the studio stated. Only the survival of Double Fine would prompt such a painful step. The transition to independence also means the company must shrink to a size it can sustain. The departing employees, though just 25.5% of the roughly 90-person team, left an indelible mark on Double Fine's games and culture, and will be sorely missed.

Double Fine is committed to supporting those affected as best it can. The studio thanks its departing staff for their hard work and commitment to the creative spirit that defines it. This marks the second time Double Fine has operated independently, having been founded as an indie outfit back in 2002 by LucasArts veteran Tim Schafer.

Xbox also weighed in on the news, expressing hope for Double Fine's future endeavors now that it has full control over its intellectual property, catalog, and runway for future projects. As revealed by Jason Schreier, Double Fine's downsizing means it has trimmed its workforce to a size more in line with its status as an independent developer.

This latest move from Xbox follows a massive restructuring effort announced on July 6, which impacted thousands of employees and saw 1,600 layoffs on the day itself. The sweeping changes aim to put the company back on the path to growth by 2027.