Latest Xbox layoffs hit id Software as Doom: The Dark Ages’ DLC launches, around half of the staff potentially cut

Microsoft’s Xbox division announced its largest restructure in company history, cutting 3,200 jobs—1,600 immediately and another 1,600 by the end of FY2027. The legendary developer id Software has been among the hardest hit, with approximately half of its ~200-person workforce laid off. Multiple sources indicate over 90 redundancies, with one former employee confirming roughly 50% cuts. Reports suggest id Software’s technical team was particularly decimated, with claims that “most (if not all) coders” were cut from the studio.

The timing proved especially difficult: the layoffs coincided with the launch of Doom: The Dark Ages - Revelations, a major DLC expansion for the critically-acclaimed shooter. The cuts raise concerns about the future of id Tech 8, the company’s advanced engine and one of gaming’s most influential technological achievements. While Microsoft has not closed id Software or cancelled any games, the studio’s ability to continue developing major titles remains uncertain.

Gaming industry figures, including Doom co-creator John Romero, responded with concern. Romero posted messages of support for affected staff and emphasized the importance of digital preservation, urging that “code, assets, stories” be preserved to maintain the studio’s historical legacy. Other parts of the Xbox ecosystem were also impacted, including ZeniMax and Bethesda divisions, with Obsidian losing approximately 25% of its workforce. Four studios are transitioning to new management or independence as part of the restructure.

Latest Xbox layoffs hit id Software as Doom: The Dark Ages’ DLC launches, around half of the staff potentially cut

Sources