id Software Responds After Xbox Layoffs, Confirms Studio Shrinkage
id Software has released a response after layoffs connected to Xbox’s recent staff cuts, a move that reportedly removed about half the workforce at the historic first-person shooter studio.
On Wednesday, a WARN notice submitted in Texas—reported on and confirmed through Game Developer—said 96 employees were laid off in Richardson, Texas, the home base of id Software. The filing also cited the elimination of 40 remote positions. The cuts are tied to a “reset” of Microsoft’s gaming operations under new Xbox CEO Asha Sharma. That reset began Monday with 1,600 people losing their jobs, and another 1,600 are scheduled to be let go sometime during the rest of the current fiscal year. In addition, four Xbox studios have already been affected, with more expected.
Some observers have worried that id Software may struggle to steer development on any new games if its current team size is too low, potentially reducing the studio to a support role rather than a full development leader. In a fresh statement sent to IGN, id Software pushed back on that idea, saying it has returned to the same headcount it had when it shipped the well-liked 2016 Doom reboot—and that it remains able to create “great games.”
Here is the statement in full, as posted on id Software’s X (formerly Twitter) account:
id and Xbox also pushed back against claims that there’s essentially no one left working on id Tech, the game engine id Software and Bethesda-owned studio MachineGames use to build their titles. MachineGames is widely rumored to be working on Wolfenstein 3. Xbox told IGN that “there are dozens of people working on id Tech across multiple locations,” and it described earlier reporting that claimed only one person remained in Texas as “inaccurate.”
What id Software says about its staffing and id Tech work
At the moment, id Software does not have a publicly announced project. Still, IGN reports that the studio is prototyping several possible directions, with an internal belief that it can keep building its own games. GamesBeat adds that before the layoffs, id was also working through concepts for new projects—such as an original property in the style of John Wick, a new Perfect Dark entry, and a Doom multiplayer/co-op game.
Even so, Bethesda studios are expected to coordinate more closely going forward. More broadly across Xbox, the emphasis is reportedly on major established franchises such as Halo, Minecraft, Candy Crush, Fallout, and The Elder Scrolls. IGN also reports that in an email to Bethesda personnel sent after Sharma’s memo on Monday, Bethesda head Jill Braff said the changes reflect the “realities of our industry and business,” and that Bethesda has a responsibility to operate from “a more stable foundation.”
“To be successful in the future, we need to change course,” Braff continued. “We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn’t make a day like today any easier.”
How the new strategy could affect Bethesda’s studio roadmap
While the headlines focus on studio layoffs—including id Software and ZeniMax Online Studios—Braff’s explanation points to a wider shift in how Bethesda plans. Without naming specific games, she said that to best set Bethesda up for future growth, the company is moving away from a model centered on “what’s next” for each separate independent studio. Instead, the plan is to prioritize Bethesda’s strongest franchises and build a content roadmap designed to best serve players and the company as a whole.
“From there, we’ll align the right talent, technology, and resources across the organization to deliver on those priorities,” Braff added.
Community reaction: what John Romero and John Carmack said
id Software co-founders John Romero and John Carmack both addressed the layoffs affecting the studio. Romero posted publicly to show support for impacted staff and urged that id’s legacy should be protected. He said, “Doom, Quake, and Wolfenstein are not easy names to carry on, especially in today’s industry.” He also pointed to the studio’s recent releases, stating that those games demonstrated real care, skill, and respect for the worlds they represent to players.
Carmack, meanwhile, said he felt sadness but not “anger or outrage.” He also questioned whether id Software’s games had sold well enough to prevent the layoffs.
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].


