Double Fine has laid off 23 employees as the studio transitions to independence following its separation from Xbox. The move comes amid broader restructuring at the publisher.
Double Fine confirmed the layoffs in a statement on July 28. The studio said only the need for survival prompted the action, noting that independence requires a sustainable size.
An Xbox spokesperson stated that Double Fine returned to independent management earlier that week, retaining its intellectual property and catalog. The company declined to comment on the length of the studio's financial runway.
The studio, known for Psychonauts 2, was acquired by Xbox in 2019 and had operated under the publisher until the recent spin-off. Xbox has conducted multiple rounds of layoffs in the past year as part of efforts to address profitability.
