XBOX Layoffs See 136 People Let Go At ID Software

ID Software, the legendary developer behind the DOOM franchise, has laid off 136 employees as part of Microsoft’s major “Xbox reset” announced on July 6, 2026. The layoffs, confirmed through WARN notices filed with the Texas Workforce Commission, represent a devastating 50% reduction in the studio’s workforce.

Of the 136 affected employees, 96 worked in-office at ID Software’s Richardson, Texas headquarters, with an additional 40 remote workers also losing their positions. The cuts came just days after Microsoft announced the broad restructuring on July 7, 2026, which included studio divestitures and significant workforce reductions across the gaming division.

ID Software’s layoffs are part of a larger Microsoft gaming division reduction totaling 3,200 immediate job losses, with an additional 1,600 cuts planned over the next 12 months—representing approximately 20% of the company’s gaming workforce. Other studios facing severe reductions include Obsidian Entertainment, which lost roughly 25% of its workforce.

Employees who spoke to media outlets about the cuts described the experience as a “bloodbath,” expressing shock at both the scale and speed of the layoffs. Many expressed heartbreak over longtime colleagues also being affected. One laid-off VFX artist, Derek Best, stated the studio has been reduced to “support studio size,” raising concerns about the studio’s ability to function and its future viability.

The timing is particularly striking, as ID Software had just released a major expansion for Doom: The Dark Ages. Industry observers have noted that despite Microsoft choosing not to close any studios outright, the severity of these cuts has raised questions about how remaining teams will operate with dramatically reduced staffing levels.

XBOX Layoffs See 136 People Let Go At ID Software

Sources