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Double Fine making layoffs after being jettisoned by Xbox
Double Fine has announced the layoff of 23 staff members following its separation from Microsoft. CEO Tim Schafer emphasized the painful nature of the decision, citing the need for a sustainable studio size. This move is part of a larger restructuring effort within Xbox, where Microsoft plans to cut 3,200 jobs across its gaming division. The layoffs have triggered protests and legal actions from labor unions, highlighting the turmoil in the gaming industry as companies navigate financial pressures and operational changes.
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Published 29 Jul 2026, 14:30 UTC1 min read
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Summary
TL;DR
- Double Fine has laid off 23 employees.
- The studio has regained independence from Microsoft.
- This decision is part of a larger restructuring within Xbox.
- Microsoft plans to eliminate 3,200 roles across its gaming division.
- Protests have occurred outside Xbox studios in response to the layoffs.
Interesting facts
- Double Fine was originally acquired by Microsoft in 2019.
- The layoffs have sparked protests organized by labor unions.
- Microsoft described the restructuring as the most significant in Xbox's history.