Double Fine has laid off 12 of its employees after a deal for an unannounced project fell through, the developer has announced.

"One of our unannounced projects was unexpectedly cancelled by its publisher, forcing us to reduce our staff by 12 people," Double Fine founder Tim Schafer said in a statement to GameSpot. "Our remaining projects -- Broken Age, Massive Chalice, and Grim Fandango Remastered, were unaffected."

Double Fine did not disclose the nature of the project or the publisher who canceled it.

Double Fine recently released Costume Quest 2 for PC, Xbox One and PlayStation 4, and Massive Chalice in Steam Early Access. The studio will bring a playable version of the remastered adventure classic Grim Fandango to Sony's PlayStation Experience event, and is still working on the second part of its Kickstarted Broken Age.

The developer also got into the publishing business earlier this year with Double Fine Presents, a program that helps indie developers finish, publish, and promote their games.