Wednesday, July 8, 2026
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id Software reportedly loses half its staff in major Xbox restructuring

2 min read Editorial

id Software, the legendary studio behind franchises like Doom, appears to have been heavily impacted by recent internal changes at Microsoft. According to reports, the company has laid off roughly half of its employees as part of a broader organizational shift within the Xbox division.

The scope of the restructuring

This reduction in staff is described as part of the “most significant restructure in Xbox history.” While specific numbers for every role have not been officially detailed, the scale suggests a major consolidation effort. The cuts affect one of Microsoft’s most historic first-party developers, raising questions about the future direction of its flagship titles.

A close-up of a closed laptop on a wooden desk with a single coffee cup nearby, symbolizing paused work and uncertainty
Workspaces at id Software may see significant changes as half the workforce is reportedly let go during this major Xbox restructuring.

What this means for you

If you are a fan of Doom, Rage, or other id Software projects, these changes could impact development timelines and studio culture. For Windows gamers, it highlights the ongoing volatility in the gaming industry as Microsoft attempts to streamline its massive Xbox portfolio.

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Source

Neowin

Over to you: Do you think these layoffs will negatively impact future releases from id Software, or is consolidation necessary for Microsoft’s gaming goals?

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Windows & Microsoft news editor at 9to5Windows. Covering everything from Windows 11 builds to enterprise updates.

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