Impact of layoffs at id Software on Doom and the gaming industry

Intelligence Summary
- Layoffs at Microsoft-owned id Software could affect iconic franchises like Doom and the studio’s future.
In brief
- 95 id Software employees have been laid off as part of a major restructuring by Microsoft.
- John Romero, co-founder of the studio, has voiced support for the affected employees and stressed the importance of preserving the studio’s history.
- The layoffs are part of a broader restructuring within Xbox, with a total of 3,200 jobs being cut.
The recent layoffs at id Software are a shocking development for the gaming community. The studio, known for influential titles such as Doom and Quake, has had to let go of 95 employees. This loss is not only a tragedy for those affected, but also a major concern for the future of the studio and its projects. John Romero, one of id Software’s founders, has publicly expressed his sympathy for the laid-off workers. He emphasized the importance of preserving the studio’s rich history and legacy, which is crucial in these turbulent times. Romero’s involvement shows that the spirit of the original founders is still alive, even amid these changes.
The layoffs are part of a broader strategy by Microsoft, which will cut a total of 3,200 jobs. This comes at a time when the gaming industry is adjusting to new market conditions and competition. The impact of these layoffs on id Software’s future projects remains unclear, but the studio will likely now have to work with more limited resources.
Analysis by GAME-scanner
The layoffs at id Software are a sign of the challenges facing major game developers in an increasingly competitive market. The loss of 95 employees could slow the development of future titles such as the next Doom game. It could also affect creativity and innovation within the studio, since fewer staff means fewer ideas and perspectives to draw from. Microsoft’s restructuring, described as the most significant in Xbox history, points to a shift in focus toward larger franchises. This could mean that smaller projects or new IPs receive less priority, reducing the diversity of id Software’s output.
What does this mean for players?
For players, this means the future of beloved franchises like Doom is uncertain. With fewer staff, development of new titles could be delayed, and the quality of future releases may be at risk. Players will have to wait and see how these changes affect gameplay experiences and the frequency of new releases.
Timeline
2026-07-07: Microsoft announces that 1,600 employees will be laid off immediately, with another 1,600 layoffs to follow in the current fiscal year.
2026-07-07: id Software confirms that 95 employees have been laid off as a result of this restructuring.
Related GAME-scanner articles
Sources
Tweet van @jg93Tweet van @jg93John Romero has commented on the layoffs that have impacted Microsoft-owned id Software as part of sweeping cuts to the Xbox business.
Tweet van @DenzilONeillTweet van @DenzilONeillZeniMax Media, which operates Bethesda, was hit hard by the layoffs. ZeniMax Online Studios has suffered significant cuts, forcing the remaining developers of The Elder Scrolls Online to rethink future content . And id Software is also heavily affected. The developer of Doom has lost 95 staff, according to former Bethesda Studios project lead Jeff Gardiner . Among them is principal character artist Denzil O’Neill , who worked on Doom The Dark Ages, Doom Eternal, and Doom over the course of 12 ye
Tweet van @romeroTweet van @romeroRomero, co-founder of id Software and the designer of Doom, Wolfenstein 3D, and Quake, took to social media to offer affected staff his support, and to call on the studio’s recent legacy to be preserved.
Tweet van @romeroTweet van @romeroid Software was founded back in 1991 by Romero, John Carmack, Tom Hall, and Adrian Carmack. Much of its early days are chronicled in books like Masters of Doom: How Two Guys Created an Empire and Transformed Pop Culture and Romero’s own Doom Guy: Life in First Person . Romero Games was working on a new project when it reportedly lost its publishing contract with Microsoft during the last round of major layoffs there in 2025. Its cofounder, Brenda Romero, said earlier this year that “we were ther