id Software lays off 136 staff amid Microsoft cuts

id Software has laid off 136 employees, more than half its workforce, as part of broader Microsoft job reductions.

The cuts at the developer of Doom and Quake came during a week when Microsoft eliminated 1,600 positions, with another 1,600 Xbox roles still at risk. The studio issued a statement noting that while it was impacted, it retains the team needed for its games and technology.

Game director Hugo Martin said the studio is the size it was during development of Doom 2016 and that id Tech remains active. Reports indicate the reduced team has started early work on a new Doom game.

The layoffs affected 158 Xbox workers in Texas, including id Software and ZeniMax Media staff, of whom 146 were union members. One long-term employee known as number 13, who joined during the Romero and Carmack era, was among those let go.

id Software recently released the Revelations expansion for Doom: The Dark Ages.

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Photorealistic illustration of Microsoft layoffs affecting id Software and Bethesda staff in a corporate office setting.
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Microsoft layoffs cut id Software and Bethesda staff

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Microsoft has laid off around half the staff at id Software as part of broader Xbox division cuts announced this week. Bethesda Softworks was also hit particularly hard by the reductions. The moves come amid plans to focus on major franchises.

id Software has confirmed significant layoffs this week as part of broader Xbox restructuring. The studio behind Doom lost 96 employees at its Texas office plus 40 remote workers. A statement from the team emphasized its ability to continue development at the scale of its 2016 game.

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id Software has pushed back against reports that recent Xbox layoffs have severely reduced its workforce. Co-studio director Hugo Martin addressed the concerns during a recent livestream.

Microsoft announced major layoffs across its gaming division and other units on July 6, 2026. The cuts total 4,800 positions, or 2.1 percent of the global workforce. Xbox is divesting several studios as part of the reset.

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Microsoft is set to begin layoffs across its Xbox division on July 6. The plans reportedly include closing Arkane Studios and canceling the Blade game.

Alpha Dog Games, the studio behind mobile title Mighty Doom, has reemerged as an independent developer. The news comes from the LinkedIn profile of founder Shawn Woods, who listed his role at the studio as running from May 2025 to the present with the note “Independently owned, again.”

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A post on Microsoft’s Xbox Player Voice Portal calling for an end to studio closures has gained over 3,000 upvotes since last week.

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