Psychonauts 2 developer Double Fine is undergoing layoffs, Kotaku has learned.

The number and roles of individuals impacted is not yet clear, nor is the precise reasoning behind the layoffs. Some individuals have begun posting about the impacts on social media. Kotaku has reached out to Double Fine for comment.

Kotaku has also reached out to Xbox, as it is unclear where Double Fine is in the transition process out of the company. It was recently announced that Double Fine would spin off into its own, independent studio once again amid a massive shake-up at Xbox. Within Xbox, 1600 individuals were laid off one month ago, with another 1600 planned throughout the coming year. It is unclear if these layoffs were instigated by Xbox or Double Fine.

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