As much as I hate seeing people lose their jobs, it's the responsible thing to do for someone like Asha who is managing a division that has to be profitable.
I hear this argument that a service like Game Pass needs a wide variety of content and different sizes of games to be appealing. That makes some amount of sense, but only if the games are punching at or above their weight. Stuff like Grounded and Hi-Fi Rish makes sense. But DoubleFine and Compulsion aren't in that league.
I can already hear all the gaming podcasts crying about DoubleFine being closed. But I would bet if you went back and looked at their previous episodes and any streams of them playing games, you would see they spent little or no time with the last couple of DoubleFine games.