Id Software maintains 2016 staff level after wave of layoffs at Xbox

id Software, a studio renowned for creating classics like Doom and Quake, brought relief to the gaming community by issuing an official statement about its situation amid the recent and widespread layoffs that hit Microsoft’s Xbox division. The company ensured that, despite being affected by staff cuts, its workforce remains at the same level as when it developed the acclaimed reboot of *Doom (2016)*, a milestone that solidified its return to the forefront of first-person shooters. Mass layoffs at Microsoft began on Monday, July 6, 2026, with the confirmation of cuts at id Software’s headquarters in Texas on Wednesday, July 8, 2026.

Large-scale cuts hit Microsoft’s Xbox division

The video game industry has been following with trepidation the recent drastic restructuring of Microsoft’s gaming division. Under the new leadership of Xbox CEO Asha Sharma, this process has resulted in the loss of thousands of jobs at several studios and the closure of some important developers. The magnitude of these changes generated a wave of uncertainty about the future of iconic studios and their franchises, altering the landscape of one of the largest gaming platforms in the world.

Microsoft initially announced the layoff of 1,600 employees, with plans to cut another 1,600 throughout the current fiscal year. This scenario has already led to the closure of four Xbox studios, and the expectation is that one more will face the same fate soon. These actions reflect a profound and complex reorganization, aiming to adapt the technology giant’s strategy to the dynamic and competitive digital games market.

The direct impact on id Software and its employees

id Software’s headquarters, located in Richardson, Texas, was one of the locations impacted by staff cuts. A WARN notice, a legal document that notifies of mass layoffs, confirmed the layoff of 96 employees at the studio’s physical location, in addition to another 40 positions that operated remotely. The news sparked immediate concern among analysts and fans, who feared that the studio, with its long history of innovation and influence in the first-person shooter genre, could be relegated to a supporting role in future projects.

The studio secures its workforce and creative capacity

Faced with speculation, id Software chose to reassure the market and its community. In its statement, the studio emphasized that the changes to the team were distributed strategically, minimizing the impact on its production capacity. The company reinforced its philosophy of “horizontal studio structure”, where collaboration and active participation of all members are essential pillars for the development of its games.

The official statement, released on the id Software page, made the following statement: “Although our studio has been impacted, these changes have been distributed across teams. We still have the staff necessary to create the games and technology we are known for. The current size of the team is practically the same as when we were developing Doom (2016).” This comparison is crucial, as *Doom (2016)* was a resounding critical and public success, symbolizing a period of great vigor and innovation for the developer, a new chapter for the franchise.

Preservation of id Tech technology for future projects

One of the biggest concerns revolved around the future of id Tech, the powerful graphics engine developed by id Software and used by other Bethesda partner studios, such as MachineGames, known for games in the Wolfenstein series. Rumors of a drastically reduced team for id Tech were categorically denied by Xbox representatives, who reinforced their commitment to technology.

Microsoft’s gaming division confirmed that “there are dozens of people working at id Tech in multiple locations,” refuting inaccurate reports that pointed to there being only one employee remaining in Texas dedicated to the engine. Essa garantia assegura a continuidade do desenvolvimento e aprimoramento da tecnologia que é a espinha dorsal de muitos títulos de ponta, vital para a inovação e qualidade dos jogos do ecossistema Xbox. MachineGames, in fact, has strong rumors of being in development of a new title in the acclaimed Wolfenstein franchise.

What id Software’s stability means for gamers

id Software’s reaffirmation of its operational capabilities is extremely positive news for the vast community of fans of its games and the industry as a whole. Maintaining a team level similar to the period of *Doom (2016)* signals that the studio, with more than 35 years of history, has the autonomy and resources necessary to continue innovating and delivering the high-quality experiences for which it is known, allaying fears of dismantling or drastic reduction in scope.

This stability is particularly relevant as important community events approach, such as QuakeCon, scheduled for August, where new announcements and updates are frequently shared. The ability of such an influential studio to remain strong in the face of consolidation and restructuring demonstrates remarkable resilience, promising the continuity of its legacy in the gaming world and the launch of future titles that honor its reputation.

• Key data on Microsoft’s Xbox cuts:

* 1,600 employees were laid off in the initial stage of restructuring the gaming division.
* Another 1,600 layoffs are planned for the remainder of the current fiscal year.
* Four Xbox development studios have already been completely closed as a result of the cuts.
* A fifth studio in the division is in the process of closing.
* At id Software, at its headquarters in Richardson, Texas, 96 employees were laid off.
* Additionally, 40 remote positions at id Software were also cut, adding to the total layoffs.

These numbers highlight the breadth of the reorganization at Microsoft, but id Software, by ensuring the maintenance of its essential workforce, projects an image of resilience and unwavering focus on creating its distinctive games and evolving its technology.