Double Fine Productions Cuts 23 Roles After Separating from Xbox

NewsData.io · United States · Jul 29, 2026

Double Fine Productions has laid off 23 employees — roughly 25% of its workforce — following its full separation from Xbox and return to independent status. CEO Tim Schafer cited the need to reach a sustainable size as an independent studio. The move is part of a broader Xbox Game Studios restructuring that will eliminate 3,200 positions in total, with 1,600 already cut on July 6 and additional reductions planned through fiscal year 2027. Other affected studios include Ninja Theory, Undead Labs, Compulsion Games, and Arkane Lyon.