Double Fine cuts 23 roles — 25% of staff — in split from Xbox to independence

Double Fine Productions laid off 23 employees on July 28, 2026, a 25% cut from roughly 90 staff, studio head Tim Schafer announced on Bluesky. Schafer cited the studio's transition to independence and "the need to reach a size the studio can sustain." An Xbox spokesperson confirmed Double Fine retains its IP, catalogue, and funding for its next projects. Microsoft acquired the studio in 2019.