Microsoft layoffs cut roughly half of id Software staff

Microsoft has laid off roughly half of the staff at id Software, the legendary developer behind Doom, as part of a sweeping restructuring of its Xbox division. The cuts, which occurred on July 7, 2026, reportedly affect around 90 to 95 employees, decimating the studio's quality assurance department and, according to multiple reports, dismissing most if not all of its coders.

The layoffs at the Texas-based studio are part of a larger plan announced by Xbox CEO Asha Sharma, which will eliminate 3,200 jobs across the gaming division over the coming fiscal year, with 1,600 cuts taking effect immediately. In an internal email, Bethesda president Jill Braff stated the company is restructuring to focus on its strongest franchises. A source familiar with the situation confirmed the strategy will center development on Fallout, The Elder Scrolls, Wolfenstein, Doom, and Quake.

The timing of the id Software cuts coincides with the release of "Revelations," a major expansion for the recent game DOOM: The Dark Ages. The layoffs have drawn sharp criticism from industry veterans and affected employees. On LinkedIn, former id Software systems programmer Michael Maynard, a 20-year veteran,...