Xbox announced a plan to cut 3,200 jobs by the end of FY 2027, affecting ZeniMax’s studios and prompting independence for some developers. id Software faces steep cuts just as Doom: The Dark Ages – Revelations DLC goes live, raising concerns about the future of the iconic FPS franchise.
Microsoft’s gaming division Xbox has unveiled a sweeping cost‑cutting program that will eliminate 3,200 positions by the close of the 2027 financial year. The move, described as a ‘course correction,’ will see studios such as Undead Labs and Compulsion Games spin off as independent entities, while the broader ZeniMax umbrella – home to Bethesda’s flagship teams – braces for massive layoffs. No studio closures have been confirmed yet, but the cloud of uncertainty hangs heavily over the division.
id Software Takes the Brunt
Amid the wider reductions, id Software appears to be hit hardest. The studio, which counted roughly 185 staff members by late 2025 when it signed union cards, is now slated to lose about 95 employees – almost half its workforce. Former Bethesda project lead Jeff Gardiner tweeted the figure, confirming the alarming scale of the cuts.
Technical Talent at Risk
Apogee and 3D Realms founder Scott Miller warned that the layoffs include “most (if not all) coders.” id Software’s reputation rests on its proprietary id Tech engine, widely hailed as the premier FPS engine in the industry. A shift toward generic engines like Unreal could erode the studio’s technical edge and jeopardise the legacy of a technology that has shaped modern first‑person shooters.
Industry Reaction
Digital Foundry’s John Linneman described the fallout as “off the charts,” while veteran concept artist Colin Geller – who spent over a decade at the studio working on every Doom title since 2016 and on MachineGames’ Wolfenstein 2 – announced his own layoff on LinkedIn. He highlighted the studio’s unique blend of skill and intense collaboration as the secret sauce behind its celebrated games.
Implications for the Future
Launching the massive DLC Doom: The Dark Ages – Revelations today, id Software now faces a paradox: a high‑profile release paired with a deep talent drain. The broader ZeniMax Online team behind The Elder Scrolls Online also grapples with similar uncertainty, albeit without a full shutdown. Such extensive cuts risk a loss of institutional knowledge and could stall innovation across the FPS genre.
