"These actions are not taken lightly."

Image credit: Double Fine Productions

Nearly a month after it was announced Xbox was cutting 3200 jobs across the division and parting ways with four studios, Psychonauts 2 studio Double Fine Productions is laying off staffers to ensure its short-term survival.

On 28th July, studio head - and LucasArts veteran - Tim Schafer shared a brief announcement on social media revealing that 23 employees were being laid off. "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." According to Bloomberg reporter Jason Schreier, the studio was around 90 people before the cuts.

Kiln - Official Launch TrailerWatch on YouTube

"We are committed to supporting each affected person as best as we can, and we thank them for their hard work and commitment to the creative spirit we cherish here at Doble Fine," the message by Schafer added.

According to Kotaku, an Xbox spokesperson shared the following statement: "Double Fine fully returned to independent management earlier this week, with their IP, catalog, and runway for their next games. As they begin their next chapter as an independent studio, we look forward to seeing what they create next." The studio's current runway is unclear. Shortly after exiting Xbox, Double Fine confirmed it would go back to being an independent studio and preserve its history and culture.

While at Xbox, Double Fine released Psychonauts 2, Keeper, and the multiplayer pottery game Kiln. As a high-profile studio known for off-beat games with a ton of heart, it's likely the team will be attempting to keep its spirit alive through similar projects, but this round of cuts will no doubt put more pressure on the remaining employees. Here's hoping there's a bright future ahead of the studio despite everything.

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