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Home / Daily News Analysis / Report: The layoffs at Xbox's DOOM studio id Software are even worse than we thought — devs at Bethesda's Austin office have been hit, too

Report: The layoffs at Xbox's DOOM studio id Software are even worse than we thought — devs at Bethesda's Austin office have been hit, too

Jul 09, 2026  Twila Rosenbaum  2 views
Report: The layoffs at Xbox's DOOM studio id Software are even worse than we thought — devs at Bethesda's Austin office have been hit, too

New reports indicate that the recent layoffs at id Software, the acclaimed studio behind the DOOM and Quake franchises, are significantly worse than previously believed. Developers at Bethesda's Austin office have also been impacted, expanding the scope of the job cuts beyond the studio's main location in Mesquite, Texas. The developments have sent shockwaves through the gaming community and raised concerns about the future of some of the industry's most iconic franchises.

Details of the Layoffs

According to multiple sources familiar with the situation, the layoffs at id Software have affected a substantial portion of the development team, including senior engineers, designers, and artists who have worked on recent titles such as DOOM Eternal and the upcoming DOOM: The Dark Ages. The cuts are reportedly part of a broader cost-cutting initiative by Microsoft, which acquired Bethesda Softworks and its parent company ZeniMax Media in 2021 for $7.5 billion. The acquisition brought id Software, along with other studios like Arkane Austin, MachineGames, and Tango Gameworks, under the Xbox Game Studios umbrella.

Sources indicate that the layoffs at Bethesda's Austin office, which houses development teams for other projects, have also been significant. The Austin office has been involved in supporting various Bethesda titles, including contributions to Starfield and The Elder Scrolls Online. The extent of the cuts in Austin remains unclear, but affected employees have taken to social media to share their experiences and search for new opportunities.

Context and Background

id Software has a storied history in the video game industry, having pioneered the first-person shooter genre with games like Wolfenstein 3D, DOOM, and Quake. The studio's technology, including the id Tech engine, has been licensed to many other developers and has been a cornerstone of Bethesda's technical capabilities. The layoffs come at a time when Microsoft is restructuring its gaming division to align with new business priorities, including a greater focus on subscription services like Game Pass and cloud gaming.

Earlier this year, Microsoft announced plans to lay off 1,900 employees across its gaming division, primarily from Activision Blizzard, which it acquired in October 2023. The layoffs at id Software and Bethesda Austin appear to be part of this ongoing workforce reduction, though their full impact is only now coming to light. The news has reignited debates about the stability of employment in the video game industry, particularly for veteran developers at legacy studios.

Community and Industry Reactions

The layoffs have drawn widespread criticism from fans and industry peers. Many have expressed concern for the affected employees, noting that id Software has long been a symbol of creativity and technical excellence. Some have also questioned Microsoft's strategy, arguing that cutting staff at a studio with a track record of critical and commercial success seems counterproductive. Others have pointed out that the layoffs reflect broader challenges in the gaming industry, where rising development costs and shifting market dynamics are leading to consolidation and headcount reductions across the board.

Former id Software employees, including legendary figures like John Carmack and John Romero, have not publicly commented on the layoffs, but several current and former staff members have taken to social media to express solidarity with those affected. The developer community has rallied to share job openings and offer support through platforms like LinkedIn and Twitter.

Impact on Upcoming Projects

The layoffs raise questions about the future of id Software's projects, most notably DOOM: The Dark Ages, which was announced at the Xbox Games Showcase earlier this year. While development is expected to continue, the loss of key personnel could lead to delays or changes in scope. Similarly, Bethesda's Austin office has been working on undisclosed projects, and the restructuring may affect their timelines. Microsoft has not issued an official statement addressing the specific impact on these studios, but the company's spokesperson reiterated its commitment to long-term investment in the Bethesda portfolio.

Industry analysts suggest that the cuts are part of a painful but necessary realignment for Microsoft as it integrates Activision Blizzard and aims to streamline operations. However, the scale of the cuts at id Software has stunned many, given the studio's reputation and the critical role it plays in Bethesda's lineup.

The layoffs also highlight a broader trend of workforce reductions in the tech and gaming sectors in 2024. Major companies like Unity, Riot Games, and others have announced significant job cuts, citing post-pandemic normalization and efficiency drives. The situation at id Software and Bethesda Austin serves as a reminder that even the most celebrated studios are not immune to the economic pressures facing the industry.

As the affected employees begin their job searches, the gaming community will be watching closely to see how Microsoft handles the transition and whether it can maintain the creative momentum that has defined id Software for decades. For now, the full extent of the damage is still being assessed, but one thing is clear: the layoffs are far worse than initially thought, and they have left a lasting scar on one of gaming's most storied studios.

In the coming weeks, more details may emerge about the total number of positions eliminated and the specific teams affected. The hope among fans and industry observers is that the affected developers will quickly find new roles, and that id Software will emerge from this restructuring stronger and more focused. However, the immediate aftermath is one of uncertainty and sadness, as the industry loses talented individuals who have contributed to some of the most beloved games of all time.


Source: Windows Central News


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