id Software layoffs cripple id Tech engine and stall new game pitches

Microsoft’s Xbox division announced a massive restructuring that resulted in the layoff of roughly half of id Software’s staff – about 90‑95 employees, or 96 workers at its Richardson, Texas office plus 40 remote staff, according to a Texas WARN filing. The cuts eliminated most of the studio’s engine team, including directors, principal programmers and senior engineers that built the id Tech engine used in Doom, Quake and Wolfenstein. While some reports claimed the engine team was reduced to a single person and that id Tech may be “dead forever,” Microsoft later stated that dozens of engineers across multiple locations continue to work on the technology.

Before the layoffs, id Software was reportedly exploring several new projects: a co‑op/multiplayer Doom title, a Perfect Dark reboot built on id Tech 5, a John‑Wick‑style action game codenamed Fury, and a Westworld‑inspired survival shooter. None of these concepts had received green‑light approval, and their future is uncertain.

Industry figures such as co‑creator John Romero expressed sympathy for the affected staff and urged preservation of the studio’s legacy, while former senior engineer John Carmack noted that the studio’s recent titles have not generated sufficient revenue to justify its size. Xbox CEO Asha Sharma emphasized continued investment in flagship franchises like Doom and Quake, but the long‑term role of id Software—whether as an independent development studio or a support team—remains in question.