Xbox announced layoffs affecting 3,200 staff across its gaming studios, with id Software hit hardest, losing about half of its roughly 185 employees—around 90 to 95 people—according to multiple reports and official WARN notices [1, 2, 3, 4, 5, 6, 7].
The cuts reportedly include most, if not all, coders and technical staff at id Software, raising concerns over the loss of critical knowledge of the id Tech engine and the company’s legacy [1, 2, 3, 7]. Before the layoffs, id Software had formed a union and employed approximately 185 people as of late 2025; official WARN filings indicate that only about 49 employees remain after the reductions [1, 3, 4].
The layoffs came as id Software released Doom: The Dark Ages – Revelations DLC on July 7. The expansion was generally well-received by players, hitting 3 million users in its first week, though it featured a new Chain Spear weapon that divided fans [1, 2, 8].
Microsoft and Bethesda leadership stated a strategic shift to focus on major franchises such as Doom, Quake, and Wolfenstein rather than continuing broad support for independent studio projects [2, 4]. Reports surfaced that id Software had been exploring several new game concepts before the cuts—including a John Wick-inspired game called Fury, a Perfect Dark reboot, a Westworld-style survival title Ironwood, and multiplayer/co-op Doom—but the staff reductions put these projects in doubt [3, 9, 10]. It remains unclear whether id Software will maintain enough team members to pursue new initiatives or if it will be relegated to a support role inside Microsoft’s gaming division [3, 9, 10].
John Romero, id Software co-founder and Doom creator, expressed sympathy for those laid off, saying "I'm so sorry for everyone at id Software affected by these layoffs... It's a strange and painful thing to step away from a place that holds so much of your work, friendships and history" [11]. He praised the remaining team for continuing the company's legacy, noting, "DOOM, Quake, and Wolfenstein are not easy names to carry on, especially in today's industry" [12]. Romero also emphasized the importance of preserving id Software’s history, code, assets, and stories for future generations [12].
Several former id developers publicly lamented the layoffs, with one ex-programmer Michael Maynard saying, "We created arguably THE BEST first person engine technology in the industry... yet today, Microsoft/XBOX decided half the team was deemed USELESS and needed to be let go" [7]. Scott Miller, founder of Apogee and 3D Realms, confirmed the loss of most coders at the studio [1].
The next major step will be watching how Microsoft integrates the reduced id Software team into its franchise-focused model and whether new projects will proceed amid the staffing constraints.
