Indie game studio Double Fine has laid off approximately a third of its workforce, with 23 employees being let go out of roughly 90 total staff. This decision comes as the company prepares to spin out from under the Microsoft umbrella and regain independence.

In a statement posted on Bluesky, Double Fine founder Tim Schafer acknowledged the painful nature of the layoffs, stating, "Only the survival of our studio would ever make us consider such a painful action." The studio, known for titles like Psychonauts, Grim Fandango, and Costume Quest, has recently released Keeper and Kiln.

The downsizing at Double Fine follows broader layoffs impacting the game industry, particularly those originating from Xbox and Microsoft this summer. The studio had announced its intention to go independent on July 6, concluding its chapter with Xbox Game Studios which began in 2019.