id Software slashes workforce by half during Xbox layoffs
Microsoft's restructuring of the Xbox division has resulted in the loss of roughly half the staff at id Software, raising questions about future projects.
Microsoft’s sweeping “reset” of the Xbox division has hit the legendary Doom studio hard: roughly 50% of id Software’s staff have been let go. The timing raises questions about the future of the franchise‑defining engine and the broader strategy Microsoft is charting for its flagship titles.
Xbox chief Asha Sharma announced a “major strategy reset” that will trim 3,200 jobs across the division in the fiscal year. The first wave cuts 1,600 employees immediately, spanning Xbox Game Studios, Activision Blizzard King and Bethesda/ZeniMax. Id Software, which sits under the Bethesda umbrella, was not singled out in the initial briefing, but multiple outlets now confirm that the studio’s headcount has been halved.
Media additions
How the cuts unfolded
- July 6, 2026 – Senior programmer Michael Maynard posted on LinkedIn that “roughly 50% of the company” had been eliminated.
Inside voices on the downsizing
“Just really sad that this is how Id Software, the pioneer/innovator of FPS action games is relegated to just another ‘reorganization’ of assets.”
Michael Maynard, Principal Gameplay System Programmer, via Thurrott
Maynard’s post was echoed by industry veteran Scott Miller, who wrote on X that he had heard id’s “most (if not all) coders” were among those let go. Miller also noted that the studio’s QA department “has also been hugely impacted.”
“Today’s layoffs decimated the teams at id Software, Bethesda Game Studios, and ZeniMax Online Studios, legendary studios whose employees brought us games like Doom, Quake, Elder Scrolls, and Fallout.”
Derrick Osobase, vice president, CWA District 6, via The Verge
Id co‑founder John Romero, who posted on social media, expressed sorrow for the affected staff and urged Microsoft to preserve the code and documents associated with the current version of id. His comment was recorded by Ars Technica.
From the company’s side, Bethesda president Jill Braff sent an internal email describing the cuts as “a necessary shift to focus on our strongest franchises” and thanking “a number of our colleagues” who were impacted. Braff’s message, obtained by Tweaktown, emphasised that no announced projects were being cancelled.
Industry reaction and wider implications
Former Duke Nukem 3D co‑creator George Broussard, speaking to Yahoo News, described id as “essentially dead,” noting that “Tools, programming (except a couple), Quake Champions team, testing team. All gone.” He added that the studio now “seems like a support team for Bethesda/others.”
The layoffs also intersect with broader Microsoft cost‑cutting. Bloomberg reporter Jason Schreier, cited by Thurrott, reported that Bethesda will “pivot to focus on its biggest franchises: Fallout, The Elder Scrolls, Doom, Quake and Wolfenstein.” The union representing Bethesda Game Studios warned that the reduced staffing “will lower the quality of these iconic games and make them less fun to play with longer delays in releases, ultimately just hurting the players and driving down revenue for Microsoft,” a claim that appears in the Verge’s coverage.
While id Software remains operational, the scale of the cuts—“over 90 people” according to Game Developer sources cited by both The Verge and Ars Technica—signals a dramatic contraction. The studio, which historically employed around 200 staff (as per LinkedIn data referenced by Yahoo), is now left with roughly half that number.
What this means for Xbox’s flagship franchises
Microsoft’s public stance is that “no announced projects have been cancelled.”
- Employee morale and union negotiations, particularly with the CWA‑backed Bethesda Game Studios Union.
What to watch next
| Event | Expected timeframe |
|---|---|
| Second wave of Xbox layoffs (up to 1,600 staff) | Through June 2027 |
