The team at id Software, the legendary studio behind the Doom franchise, has been hit by a massive wave of layoffs. On Monday, as part of a wider announcement involving 3,200 current and pending job cuts across Microsoft’s Xbox division, approximately half of the Richardson, Texas-based studio was let go. According to reports from those affected, at least 90 out of roughly 185 employees were released in a move that blindsided many within the studio.
The timing of the cuts is particularly jarring, occurring just one day after the studio shipped Revelations, the latest downloadable content (DLC) for Doom: The Dark Ages. For many, this content will be the final project they complete at the company. Studio head Marty Stratton reportedly became emotional while delivering the news to staff over a Teams call.
A Shift in Priorities
The layoffs have cast a long shadow over the future of the studio. Prior to the cuts, the team was exploring several new directions, including a John Wick-inspired original IP codenamed Fury, a potential entry in the Perfect Dark franchise, and a multiplayer or co-op expansion for Doom. It is currently unclear which, if any, of these concepts can move forward with the remaining headcount.
The downsizing highlights a growing tension regarding Microsoft's strategy for its acquisitions. While Doom: The Dark Ages achieved a respectable Metacritic score of 83, the title faced challenges in generating standalone revenue as millions of players accessed the game through Xbox Game Pass. With the Game Pass subscriber count stagnant at 30 million—far below the anticipated 77 million—the studio’s focus on high-fidelity, single-player experiences appears to have clashed with the platform's current financial goals.
The Future of id Tech
Beyond the loss of talent, questions are swirling about the studio's technological future. id Software has long relied on its proprietary id Tech 8 engine, a legacy of co-founder John Carmack designed specifically for the speed and visual demands of Doom. However, with other Microsoft-owned studios increasingly standardizing on Unreal Engine to streamline engineering and costs, the future of id’s custom technology remains uncertain. Transitioning to a new engine could be a risky move for a studio defined by its signature, high-speed gameplay.
Daniel Gagne, a principal UI artist who survived the cuts, noted the human toll of the restructuring on LinkedIn. "Having navigated the gaming industry for over 25 years, I’ve seen my share of restructuring. However, this one cuts much deeper," Gagne wrote. "Seeing friends and coworkers—some who dedicated over two decades to id Software—lose their jobs is heartbreaking."
The studio, which was founded in 1991 and purchased by ZeniMax in 2009 before being acquired by Microsoft in 2021, now faces a difficult road ahead. For those left behind, the path is unclear, with some employees expressing doubt that the current team size allows for a viable way forward. As the gaming news cycle continues to report on the broader industry consolidation, the reality for the developers at id Software remains one of deep uncertainty.