Double Fine cuts 23 jobs after gaining independence from Microsoft

Double Fine, formerly one of Microsoft’s first‑party studios, has become an independent developer and regained the intellectual‑property rights to its games. Shortly after the transition, the studio announced it is laying off 23 employees – roughly one‑quarter of its staff – to ensure financial sustainability. Founder Tim Schafer said the decision was “painful” but necessary for the studio’s survival, emphasizing the need to maintain a manageable size.

The layoffs come amid broader uncertainty for former Microsoft studios, several of which have been sold or are seeking new ownership. Double Fine’s recent titles have underperformed commercially, adding pressure on the newly independent studio to cut costs while continuing development of upcoming projects.