id Software reportedly loses about half its staff in latest Xbox layoffs

Multiple reports say Microsoft’s latest Xbox restructuring hit id Software hard: 90 to 95 jobs were cut at the Doom studio, which works out to roughly half of id Software’s workforce.

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Across the broader “Xbox reset,” the number may reach about 3,200 layoffs. Roughly 1,600 roles were reportedly cut in the first wave alone, and the timing has made the backlash even sharper because those cuts are said to have landed just as a new Doom: The Dark Ages expansion was being released.

People familiar with the situation say Microsoft Xbox leadership told staff the gaming business is “not healthy.” They reportedly pointed to thinner profit margins than competitors and Game Pass growth that’s come in slower than expected, and that seems to be behind a wider push to reduce management from as many as 14 layers to five or fewer, sell or spin off studios such as Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, and narrow Bethesda’s focus more tightly around Fallout, The Elder Scrolls, Wolfenstein, Doom, and Quake.

If you keep a close eye on Xbox’s studios, there’s another part of this report that stands out: Obsidian Entertainment was reportedly hit too. Critics, former staff, and the Communications Workers of America say losing that many programmers could hurt morale, creativity, confidence, institutional knowledge, and the future of the id Tech engine.