Latest Microsoft Layoffs Cuts 100+ Jobs At id Software, Reduces Team To “Support Studio Size”

The extent of the recent XBOX layoffs have shown to be glaring. In one regard, it was handled with some concern for the overall culture. Rather than studio closures, four teams are instead finding new ownership or going fully independent. Developers Undead Labs, Compulsion Games, Ninja Theory, and Double Fine Productions are those affected. There is also Arkane Lyon which is being shopped around for possibilities to exit as well.

On the other hand, developers like Obsidian Entertainment were faced with a sizable wave of layoffs. According to GameFile, about 52 employees were notified about their termination. In return, a new Fallout game is said to be in development which replaces a planned sequel for Avowed. This plays into the separate report that reveals Bethesda’s refitting to focus on tentpole franchises – Fallout, Wolfenstein, The Elder Scrolls, Doom, and Quake.

Speaking of Doom & Quake specifically, developer id Software was hit with major layoffs at the Austin-based developer. Enough so that the team has been reduced to a “support studio size,” says former VFX artist Derek Best. It is gathered that about 136 layoffs were issued for the developer. @TheDoomDominion on X listed the full index of employees affect which you can read below:

“Collectively decades of knowledge was wiped out of the studio,” Best said in the statement. “Great job, Microsoft. Nothing says business success like nuking a team into the dirt and relegating them to support studio size while also throwing out massive technological achievements.” It should be worth noting that id Software just launched expansion ‘Revelations’ for Doom: The Dark Ages this week.

Just over a year ago, a similar instance occurred under Microsoft’s jurisdiction. In the 2025 mass layoffs, Forza Motorsport team Turn 10 Studios was faced with similar wrath by the firm. It was indicated that the team was reduced to being a support studio with how bombastic the firings were when dealt. You can read the full report by heading here.

What do you think about the current state of id Software currently?

Source: Video Game Chronicle