id Software laid off approximately 136 employees in early August 2026 as part of broader Microsoft Xbox studio cuts affecting 3,200 staff across multiple teams this financial year [1, 2]. About 40 of those laid off worked remotely [1, 3].
Despite the cuts, id Software stated it retains the necessary crew to build games and support its proprietary id Tech engine. The remaining team is roughly the same size as during the development of Doom (2016), when the studio had about 125 core staff plus 30 or more QA and support personnel [1, 3, 2]. "While our studio was impacted, those changes were spread across teams. We still have the crew we need to build the games and tech we're known for," id Software said [1]. It added, "We have always had a flat studio where everyone is a maker, and we will remain true to that philosophy moving forward" [1].
A Microsoft Xbox spokesperson confirmed "dozens of people working on id Tech across multiple locations," rejecting claims that only one person remained managing the engine in Texas [1, 3]. Some employees had speculated a major reduction in the team size but those claims remain unverified [2].
The layoffs occurred just before the release of the Doom: The Dark Ages expansion DLC during the week of August 8, 2026 [1, 2]. While id Software has not officially announced new projects, reports indicate it is prototyping several ideas including a John Wick-style intellectual property and a new Perfect Dark game [3].
id Software emphasized its focus on supporting impacted employees and continuing to build innovative games and technology responsible for its 35-year legacy. The studio said it looks forward to participating in QuakeCon 2026 in August [1, 3, 2]. This marks the next significant public appearance where id Software will engage fans and showcase its progress.
