Legendary first‑person shooter studio id Software in Richardson, Texas, felt the shockwave of Xbox’s sweeping restructuring. A WARN notice filed in Texas, reported by Game Developer, confirmed the termination of 96 on‑site employees and an additional 40 remote roles. The cuts are part of new Xbox CEO Asha Sharma’s “reset” of Microsoft’s gaming division, which began with 1,600 jobs cut on Monday and promises another 1,600 reductions before the fiscal year ends. Four Xbox studios have already exited, with another likely to follow.

Statement from id Software

In a concise statement to IGN, id Software emphasized that despite the layoffs, the studio retains the talent required to build the games and technology it is known for. “The team today is about the same size we were when making Doom 2016,” the post read, underscoring a flat studio philosophy where every employee is a creator. The company pledged to support impacted colleagues while continuing to develop the “great games and tech” that have defined it for 35 years, with a promise to showcase progress at August’s QuakeCon.

Id Tech Engine and Ongoing Projects

Xbox clarified that dozens of engineers across multiple locations are still working on the id Tech engine, countering reports that only a single person remained in Texas. While no official project has been announced, GamesBeat reports that id Software is prototyping several concepts, including a John‑Wick‑style original IP, a new Perfect Dark title, and a multiplayer/co‑op version of Doom. These initiatives suggest the studio remains capable of delivering original content despite the reduced headcount.

Bethesda’s Strategic Shift

Bethesda chief Jill Braff, in an internal email following Sharma’s memo, framed the layoffs as a response to “the realities of our industry and business.” She highlighted a pivot toward strengthening flagship franchises such as Halo, Minecraft, Candy Crush, Fallout, and The Elder Scrolls, moving away from a studio‑centric planning model. Braff asserted that aligning talent, technology, and resources around the strongest IPs will secure sustainable growth for Bethesda and its players.

Founders React

Co‑founders John Romero and John Carmack weighed in publicly. Romero took to social media to express solidarity with affected staff and urged preservation of the studio’s legacy, noting that “Doom, Quake, and Wolfenstein are not easy names to carry on, especially in today’s industry.” Carmack, while saddened, avoided anger and questioned whether game sales had been sufficient to avert the cuts.

Overall, id Software’s return to its 2016 staffing baseline reflects a commitment to its core development philosophy. Yet, Microsoft’s broader focus on marquee franchises may limit the creative latitude of smaller studios, raising questions about the future balance between innovation and commercial stability in the gaming ecosystem. The next chapter will likely unfold at QuakeCon, where the studio hopes to demonstrate that its reduced team can still produce industry‑defining experiences.