id Software Responds to Xbox Layoffs, Says It's Now the Same Size as When It Created 2016's Doom

id Software has released a statement in response to the recent Xbox layoffs, which saw roughly half of the legendary first-person shooter studio's staff lose their jobs. A WARN notice filed in Texas and reported by Game Developer confirmed that 96 workers were laid off in Richardson, Texas, where id Software is based, along with 40 remote positions. These cuts are part of new Xbox CEO Asha Sharma's "reset" of Microsoft's gaming business, which began with 1,600 job losses on Monday, with another 1,600 expected to be let go during the rest of the current financial year. Four Xbox studios have already been closed, with another on the brink.

Concerns have been raised that id Software may be unable to lead development on new games and could be relegated to a support studio role. However, in a statement to IGN, id Software said it is now back to the staffing level it had when it created the acclaimed 2016 Doom reboot and insisted it remains capable of making "great games." The full statement was posted on id Software's X/Twitter page.

id Software also pushed back against claims that few employees remain working on id Tech, the game engine used by id and fellow Bethesda-owned studio MachineGames. A source familiar with the situation told IGN that dozens of people across multiple locations are still working on id Tech.

Although id Software currently has no announced projects, IGN understands the studio is prototyping several potential titles and believes it can still develop its own games. According to GamesBeat, before the layoffs, id was exploring new game ideas, including a John Wick-style original IP, a new Perfect Dark game, and a multiplayer/co-op Doom game.

Bethesda studios will collaborate more closely moving forward, and Xbox is focusing on major franchises like Halo, Minecraft, Candy Crush, Fallout, and The Elder Scrolls. In an email to Bethesda staff following Sharma's memo, Bethesda boss Jill Braff stated that the layoffs and strategy shift "reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation." She added, "To be successful in the future, we need to change course. We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players."

Without naming specific games, Braff explained that Bethesda is moving from a planning model centered on each independent studio's next project to one focused on its strongest franchises and determining the content roadmap that best serves players and Bethesda as a whole. "From there, we’ll align the right talent, technology, and resources across the organization to deliver on those priorities," she said.

id Software co-founders John Romero and John Carmack have both commented on the layoffs. Romero offered support to affected staff on social media and called for the studio's recent legacy to be preserved, noting that "Doom, Quake, and Wolfenstein are not easy names to carry on, especially in today's industry. The last few games showed real care, skill and respect for what those worlds mean to people." Carmack expressed sadness but not "anger or outrage," questioning whether id Software's games had sold well enough to prevent the layoffs.