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Home » Psychonauts Developer Double Fine Hit With Layoffs
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Psychonauts Developer Double Fine Hit With Layoffs

News RoomBy News Room28 July 20262 Mins Read
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Psychonauts Developer Double Fine Hit With Layoffs

Double Fine, the developer responsible for games like the Psychonauts franchise, Brutal Legend, and most recently Kiln, is cutting about a third of its overall staff in layoffs. The move comes following the reveal that the Psychonauts developer would be parting ways with Xbox.

Xbox CEO Reveals Full Details of Layoffs and Restructuring

In a letter to employees, Xbox CEO Asha Sharma confirms the single biggest staff reduction event for the company as well as four studios leaving.

Double Fine Productions Reveals Layoffs

Double Fine Productions announced that the team has let go of 23 staff members in necessary layoffs. In a message shared on official social media channels, Double Fine founder Tim Schafer explained that the team is tightly-knit, and that the decision to let members go was not made lightly. However, it became necessary in order for Double Fine as a whole to survive. Now that Double Fine no longer has support from Xbox, it seems the studio couldn’t maintain the same size of team it had, which was somewhere around 90 people. Schafer noted that the studio would be supporting those impacted as much as possible, and that they would be missed at the game studio.


kiln tag page cover art


Released

April 23, 2026

ESRB

Everyone 10+ / Fantasy Violence, Crude Humor, Language, Users Interact

Publisher(s)

Xbox Game Studios

Multiplayer

Online Multiplayer


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