id Software, the studio behind the iconic Doom franchise, has reportedly laid off around 50 percent of its workforce as part of Microsoft’s ongoing restructuring of its Xbox gaming division.
According to multiple sources cited by Game Developer, the layoffs affected roughly half of the Texas-based studio’s employees, with one source estimating that more than 90 staff members lost their jobs.
Layoffs Yet to Be Officially Confirmed
Neither Microsoft nor id Software has officially confirmed the number of employees affected.
However, former id Software employee Michael Maynard appeared to support the reported figure in a LinkedIn post. While the company has not disclosed which departments were impacted the most, reports suggest that the quality assurance (QA) team was among those hit hardest.
Part of Microsoft’s Wider Xbox Job Cuts
The reported layoffs are part of Microsoft’s broader restructuring of its Xbox gaming business.
The company previously announced the elimination of approximately 1,600 Xbox-related positions and plans to cut another 1,600 jobs before the end of its fiscal year on June 30, 2027.
Microsoft’s Planned Workforce Reductions
| Category | Jobs Affected |
| Initial Xbox layoffs | 1,600 |
| Additional planned Xbox layoffs | 1,600 |
| Total planned Xbox job cuts | 3,200 |
| Company-wide Microsoft layoffs | 4,800 |
Focus Shifts to Major Gaming Franchises
Reports indicate that ZeniMax Media, id Software’s parent company under Microsoft, is prioritizing investment in its biggest franchises, including:
- Doom
- The Elder Scrolls
- Fallout
- Wolfenstein
Although Microsoft has not provided a specific reason for the layoffs at id Software, the move is believed to be part of a strategy to streamline development and focus resources on its most successful gaming properties.
Layoffs Coincide With New Doom Expansion
The reported workforce reduction comes shortly after the release of Doom: The Dark Ages in 2025. On July 7, 2026, id Software launched the Revelations campaign expansion—the same day reports of the layoffs surfaced.
The reported cuts highlight the continued impact of Microsoft’s restructuring efforts, showing that even studios behind some of Xbox’s most established and successful franchises are not immune to the company’s ongoing cost-cutting measures.
