id Software Responds to Xbox Layoffs, Details Impact on Doom Dev Plans
id Software has responded to the latest wave of workforce cuts tied to Xbox’s restructuring, laying out where the studio stands and what changes mean for its ability to keep making the games and technology it’s known for. The Bethesda-adjacent legend studio wasn’t widely expected to take a major hit during the shake-up, but the reductions landed hard enough that some observers began treating id as effectively finished. In its own statement, the team pushed back on that idea and insisted it still has the resources required to continue.
Xbox layoffs: what’s known so far, and where id Software fits
| Topic | Details from the report |
|---|---|
| Planned layoffs (Xbox) | 3,200 total planned, with 1,600 announced so far |
| id Software status | Studio says it still has the team size and capacity needed; current headcount roughly matches the crew during DOOM (2016) development |
| Broader industry impact | Multiple studios are reportedly moving toward independence, seeking buyers, or otherwise facing uncertain futures; more layoffs are expected |
| Event reference | June 2026 Xbox Showcase included prominent mentions of Ninja Theory’s Senua and Undead Labs’ State of Decay 3 |
Xbox’s biggest-ever reorganization has been disruptive for the studios that are actually responsible for shipping games. While the company has only publicly outlined half of its total planned job cuts so far—1,600 out of a 3,200 figure—the consequences are already spreading across the industry. Double Fine and Compulsion Games are reportedly in the middle of shifting back toward independent operation. Arkane Lyon is widely expected to face a similar outcome. Meanwhile, Ninja Theory and Undead Labs have reportedly not landed buyers yet, leaving their long-term plans in limbo. With additional layoffs still expected, the overall outlook remains bleak.
Against that backdrop, Vermont Senator Bernie Sanders weighed in on the layoffs that affected multiple Xbox game studios, adding political pressure to an already tense situation.
id Software’s statement: changes happened, but the studio says it’s continuing
id Software is one of the industry’s defining names, with a long track record of major releases, yet it still saw significant staffing cuts tied to Xbox’s restructuring. Fans naturally wondered whether the studio was about to be shut down, but id Software’s official response directly rejects that conclusion. The statement says the changes were distributed across teams rather than concentrated in a way that would stop the studio from functioning. It also claims that id still has the personnel needed to build the games and technical work the studio is recognized for.
In particular, id Software says its current team size is roughly the same as it was during development of DOOM (2016). The statement further emphasizes that staff are currently focusing on supporting one another and assisting the team members who were impacted by the layoffs. The implication is that production and future work are still being carried forward—suggesting that more projects are being developed or incubated despite the smaller workforce.
- Image via id Software
That reassurance is meaningful, but it doesn’t remove the practical concerns. A production pipeline can’t simply run at the same pace when the studio is operating with a significantly reduced staff. It’s reasonable to expect that schedules, scope, and internal priorities could shift as a result. There’s also a human cost that can’t be overlooked: experienced veterans and long-time developers have reportedly lost their jobs due to decisions made by their publisher, and those losses inevitably affect production capacity.
The situation also reflects a broader shift in tone inside Microsoft’s gaming leadership. Early optimism around Xbox CEO Asha Sharma’s first 100 days has reportedly worn off now that layoffs have accelerated, with thousands of people in Microsoft’s gaming division being cut.
Identify the silhouettes before time runs out.
The unfolding story has also reignited debate about whether Xbox’s acquisition strategy from years ago was beneficial for the industry. Public figures have pointed to the approach Xbox took in 2018—when it started buying well-known studios such as Playground Games, inXile Entertainment, Obsidian, Undead Labs, and others—as a template that now looks increasingly questionable. The claim being made is that many of those acquisitions haven’t delivered the results expected, and that any future consolidation efforts should be viewed with skepticism.
A similar pattern was seen with Embracer Group in 2023, when the company laid off nearly 1,000 employees after its own acquisition streak. That decision was widely treated as a major misstep at the time, but the current Xbox situation is described as even more severe. Even studios that were positioned as having high-profile releases and were included in major marketing moments—such as Ninja Theory’s Senua and Undead Labs’ State of Decay 3 during the June 2026 Xbox Showcase—have reportedly been pulled into the fallout. With a second wave of layoffs still expected, the next round of studio closures and restructuring decisions may be just as difficult to interpret.
For now, id Software’s status isn’t described as being directly in question. But the same cannot be said for many other studios caught in the wider fallout, where uncertainty continues to grow alongside each new announcement.
