Double Fine confirmed that it has laid off 23 members of its staff following its recent move to independence from Microsoft. CEO Tim Schafer confirmed the move on social media, noting that they are committed to “supporting each affected person as best we can.” The studio, which left Xbox as part of the latter company’s reset, went independent as part of a buyout.
In a social media statement, Schafer said, “As a small, tightly-knit team, these actions are not taken lightly. Only the survival of our studio would ever make us consider such a painful action. Our transition to becoming an independent company also means becoming a size that we can sustain. The people we are losing are all important. They made an impact on our games and culture, and they will be missed.”
Double Fine was one of four studios confirmed to be departing the Xbox stables as part of the early July divestments. Both it and Compulsion Games were bought out by their own management, while Undead Labs and Ninja Theory were acquired by outside buyers. During this time, Microsoft also confirmed it was laying off 3,200 employees outside the studios, with 1,600 already having lost their jobs.
An Xbox spokesperson said in a statement to Kotaku that Double Fine went fully independent earlier in the week, adding, “As they begin their next chapter as an independent studio, we look forward to seeing what they create next.” This would seem to imply that Xbox had no hand in the layoffs.