Doom Developer id Software Reduces Staff by 50% Amid Xbox Layoffs

On July 7, 2026, id Software, the developer behind the Doom franchise, reportedly laid off approximately 50% of its workforce as part of broader layoffs at Xbox. This news coincided with the release of a significant expansion for their latest Doom game, raising concerns about the future of the iconic franchise.

Impact of Layoffs on id Software

Sources indicate that the layoffs at id Software resulted in over 90 redundancies, significantly affecting the quality assurance (QA) department. A former employee, Michael Maynard, confirmed in a LinkedIn post that the cuts impacted around 50% of the team, stating, "We created arguably THE BEST first person engine technology in the industry. Yet today, Microsoft/XBOX decided half the team was deemed USELESS and needed to be let go; despite all the amazing work and effort from every designer, programmer, artist, audio specialist, level designer, fx, tech design, and on and on and on."

These layoffs are part of a larger restructuring by Microsoft, which recently laid off about 4,800 employees across its divisions. As XBOX CEO Asha Sharma noted, an additional 1,600 employees will be cut throughout Microsoft's next fiscal year, which ends in June 2027.

Microsoft's Focus on Major Franchises

According to a report by Bloomberg, ZeniMax, the parent company of id Software and several other studios, is shifting its focus towards major franchises, including Doom, The Elder Scrolls, Fallout, Quake, and Wolfenstein. This strategic change may influence the development priorities and resources allocated to these franchises.

Reactions from the Gaming Community

Industry leaders have expressed concern over the impact of these layoffs. Derrick Osobase, vice president of CWA District 6, stated, "Today’s layoffs decimated the teams at id Software, Bethesda Game Studios, and ZeniMax Online Studios, legendary studios whose employees brought us games like Doom, Quake, Elder Scrolls, and Fallout. The layoffs that occurred this week will lower the quality of these iconic games and make them less fun to play with longer delays in releases, ultimately just hurting the players and driving down revenue for Microsoft."

Additionally, John Romero, co-founder of id Software, extended his support to affected staff, sharing, "I’m so sorry for everyone at id Software affected by these layoffs. I know what it feels like to leave id while id goes on. It’s a strange and painful thing to step away from a place that holds so much of your work, friendships and history."

As the gaming industry continues to evolve, the effects of these layoffs may resonate for years, shaping the future of beloved franchises and impacting the creative teams behind them.