Okay, so Id Software, the studio behind DOOM, it’s been a rough week for them. They put out a statement confirming layoffs, saying the team is now the same size as when they made DOOM (2016). This is part of a much larger wave of cuts across Xbox and Microsoft, a really big one. Microsoft announced a “reset” for its gaming business, right, with Xbox CEO Asha Sharma saying they’d cut around 3,200 jobs throughout fiscal year 2027, and 1,600 of those cuts happened immediately. This is like, 20% of their total workforce in gaming, it’s a huge number of people.
Four studios are even leaving Xbox to become independent or find new ownership, like Double Fine and Compulsion Games. Ninja Theory and Undead Labs are also getting new owners. For Id Software specifically, a WARN notice in Texas confirmed 158 ZeniMax Media layoffs in the state, and 96 of those were at Id Software’s office in Richardson, Texas. Another 40 remote workers tied to that location were also let go, so that’s 136 roles eliminated at Id Software total. Some reports say this is about half the studio’s staff, which is a lot of people to lose. The studio’s statement, it was on X, it thanked people for support and said the changes were spread across teams, but they still have the crew to build games and tech.
They said the team size is like it was for DOOM (2016). That game, DOOM (2016), reportedly had a development team of around 200 people, according to some keynotes from that time. So, if they lost 136 people from a reported 185 employees in December 2025, that leaves about 49 people, which is a big drop, and it makes you wonder about the “same size” comment (is it really the same size or just a comparison to a smaller point in time for that project?).The co-founders, John Carmack and John Romero, they both spoke out. Carmack, he’s saddened, but he can’t muster anger, he thinks Id Software might have been a “marginal business” for Microsoft, and that Minecraft revenue has been carrying other studios.
Romero, he expressed sorrow for those affected, praising the team’s work on the legacy titles. This isn’t isolated, you know. The gaming industry has been seeing mass layoffs since 2022, peaking in January 2024. An estimated 45,000 jobs were lost from 2022 to July 2025. In 2024 alone, around 14,600 game-related jobs were cut, and 2025 saw about 9,053 layoffs.
The 2026 State of the Game Industry Report from GDC said 33% of American game workers were laid off in the last two years. Microsoft itself cut 1,900 people from its gaming division in January 2024, right after the Activision Blizzard merger. Then another 9,000 across Microsoft in July 2025, with Xbox hit hard. This latest round, it’s just another blow in a continuous, brutal trend. Xbox’s new CEO, Asha Sharma, she sent a memo talking about a “reset” for the company, saying they need to “strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players”.
Bethesda president Jill Braff echoed that, saying the changes “reflect the realities of our industry and business”. Some former Id staff are worried about the future of the Id Tech engine, saying key positions were cut. Microsoft, though, they pushed back on that, saying “dozens of people” are working on Id Tech across multiple locations. It’s a lot of uncertainty for a legendary studio.
They’re still planning to be at QuakeCon this August.