Double Fine Productions has reduced its workforce by 23 positions after gaining independence from Xbox

Recent restructuring at Double Fine Productions resulted in a 25% workforce reduction, coinciding with its departure from Xbox this past week.

Via an announcement on social media, Tim Schafer, the company's CEO and founder, revealed that 23 staff members were let go as part of an adjustment to match its new independent status.

"Our team is small and closely connected, making such decisions very difficult. The necessity of continuing our operations prompted this tough action," Schafer explained.

He expressed appreciation for the departing employees: "Their contributions were invaluable to our projects and culture, and they will be missed. We will provide as much support to them as possible, acknowledging their dedication to Double Fine's creative ethos."

An Xbox representative informed Kotaku that Double Fine has regained full independence, managing its IP and preparing for new projects.

"As they embark on this new journey, we are eager to see their future innovations," the spokesperson added.

In 2019, Microsoft acquired Double Fine for $13.2 million.

During their time within Xbox Game Studios, the company released titles such as Psychonauts 2, Keeper, and Kiln.

Earlier this month, Double Fine was one of five studios affected by significant layoffs at Xbox, along with Compulsion Games, Ninja Theory, Undead Labs, and Arkane Lyon.

Double Fine and Compulsion Games have regained autonomy, whereas Ninja Theory and Undead Labs are in discussions for new ownership and investment.

Meanwhile, Arkane is undergoing strategic consultations in France.

Overall, Xbox Game Studios will see 3,200 jobs cut, with 1,600 positions already eliminated on July 6 and more reductions anticipated through fiscal 2027.