Microsoft cuts 4,800 jobs; Double Fine is in the crossfire as part of the wave of industry layoffs affecting Seattle’s tech and gaming scene. Double Fine is a renowned game studio known for quirky, story-driven titles and for being acquired by Microsoft in 2019, integrating into Xbox Game Studios. The current news underscores a broader consolidation in the sector impacting creative studios in the Pacific Northwest.
Microsoft has announced 4,800 job cuts companywide, including 3,200 roles in Xbox during fiscal 2027 and 1,600 Xbox positions eliminated immediately. Xbox will spin out or divest five studios and reduce management layers as it restructures to strengthen margins while shifting resources toward AI and core franchises. The move has reduced Xbox headcount by about 20%.