id Software Hit Hard by Xbox Layoffs, Future Uncertain
Games

id Software Hit Hard by Xbox Layoffs, Future Uncertain

authorBy Amy Hennig
DateJul 07, 2026
Read Time3 min

In a recent and concerning development within the gaming industry, id Software, the legendary studio acclaimed for pioneering first-person shooters with titles such as Doom, Wolfenstein, and Quake, has been severely affected by Xbox's widespread job reductions. Reports indicate that the studio has seen its workforce dramatically cut, with over half of its approximately 200 employees, including a significant number of its crucial coding staff, being dismissed. This restructuring has prompted considerable discussion and concern regarding the studio's capacity to continue its legacy of innovation and its future direction within the larger Bethesda and Xbox framework.

id Software Faces Significant Reductions Amidst Xbox Restructuring

Following Xbox's announcement of widespread job cuts impacting 3,200 positions across its various teams, the full extent of these reductions is now coming to light. Among the most profoundly affected is id Software, a titan in game development. Anonymous sources, corroborated by industry figures like Jeff Gardiner, a former project lead at Bethesda, and Scott Miller, founder of Apogee/3D Realms, reveal that over 90 employees have been let go. Alarmingly, Miller shared insider information suggesting that “most (if not all) coders” at id Software have been impacted. This is particularly striking given id Software's historical reputation as a technological innovator, responsible for groundbreaking game engines that defined the FPS genre.

This restructuring appears counterintuitive to Microsoft's stated objectives, which emphasize focusing on strong franchises. id Software has consistently delivered successful titles, most recently with Doom: The Dark Ages, which achieved an impressive 3 million players in its first week—a record launch for the studio. Although its availability on Game Pass contributed to these numbers, the success underscores id Software's continued relevance and appeal.

An internal email from Bethesda president Jill Braff, whose company oversees id Software, outlined a shift in strategy from supporting independent studios to concentrating on core franchises and a unified content roadmap. This strategic pivot, coupled with the significant staff reductions at id Software, raises questions about its future. Many observers fear the studio, once a standalone powerhouse, might transition into a support role, assisting with other Bethesda titles like Fallout or Wolfenstein, rather than spearheading its own innovative projects.

John Romero, co-founder of id Software, extended his support to those affected, acknowledging their vital contributions to maintaining the studio's storied legacy. He praised their skill and respect for the iconic worlds they helped create, highlighting the immense challenge of upholding the high standards associated with names like Doom, Quake, and Wolfenstein in today's competitive industry.

The news has led many Doom fans to express a desire for id Software to have been granted the same autonomy as studios like Double Fine, which retained independence during similar industry shifts. This sentiment reflects a broader concern that the traditional hub of creative and technical excellence might diminish, morphing into a mere support function within a larger corporate structure.

The recent layoffs at id Software serve as a stark reminder of the volatile nature of the modern video game industry, even for its most established and influential studios. It highlights the tension between creative independence and corporate consolidation, prompting reflection on the potential impact on game innovation and the preservation of distinct studio identities. As industry giants like Xbox recalibrate their strategies, the fate of revered developers like id Software hangs in the balance, raising critical questions about the future landscape of gaming and the value placed on pioneering spirit versus corporate synergy.

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