id Software Says Development Continues After Xbox Layoffs, but Former Worker Warns id Tech Was Severely Weakened

id Software says it still has the people required to continue developing games and technology following Microsoft’s extensive Xbox restructuring, but a former employee claims the cuts removed critical teams responsible for DOOM: The Dark Ages, its Revelations expansion, and the proprietary id Tech engine.

Microsoft confirmed on July 6 that approximately 3,200 Xbox positions will be eliminated throughout fiscal year 2027, including 1,600 immediate reductions. The restructuring affects teams across Bethesda, ZeniMax, Activision, Blizzard, King, Mojang, and Xbox Game Studios, although Microsoft says no publicly announced first party projects have been cancelled.

According to an investigation from Game Developer, 136 positions connected to the id Software office in Texas were eliminated. The report cites several anonymous employees who described the announcement process as extremely brief and said access to internal communications was removed shortly afterward.

Following the cuts, id Software issued a public statement maintaining that the studio remains operational.

“We have the staff needed to build the games and tech we are known for.
— id Software

A message from id pic.twitter.com/4i4YyjB3xc

— id Software (@idSoftware) July 10, 2026

A former id Software employee disputed that assessment, claiming it “stretches reality to breaking point.” According to the source, most of the developers who worked on the recently released Revelations expansion for DOOM: The Dark Ages were affected, alongside substantial reductions across visual effects, technical art, design, artificial intelligence, gameplay, and engine support. These figures have not been independently confirmed by Microsoft.

The former employee said all 5 members of one visual effects team, including its lead, were dismissed. The technical art and design department was reportedly reduced to its lead after 4 additional employees were removed, while approximately 90% of the design team responsible for artificial intelligence and gameplay was allegedly eliminated.

“I cannot imagine a path forward where they make another game in id Tech.
— Former id Software employee”

The source also claimed that the cuts removed much of the institutional knowledge required to maintain, modify, and expand id Tech. The engine currently powers DOOM: The Dark Ages, while specialized versions have supported titles from other ZeniMax studios, including MachineGames.

Xbox rejected reports that the id Tech operation had effectively been reduced to a single employee in Texas. In a response provided to Game Developer, the company said dozens of people continue working on id Tech across multiple locations. That statement suggests the engine team remains active, although Microsoft did not disclose its previous staffing level, the number of affected engineers, or how responsibilities will be distributed after the restructuring.

The timing has intensified criticism because DOOM: The Dark Ages became the largest launch in id Software’s history, reaching 3 million players 7 times faster than DOOM Eternal. The Revelations expansion launched on July 7, only 1 day after Microsoft announced the restructuring.

Microsoft has identified DOOM, Quake, Fallout, The Elder Scrolls, and Wolfenstein as strategically important properties within its revised Bethesda portfolio. However, reducing the teams responsible for the underlying technology creates questions about how those franchises can maintain their current production quality.

Xbox and the former id Software employee are describing different parts of the same situation. Microsoft may still employ dozens of id Tech developers across several locations, but the existence of a remaining team does not automatically replace the expertise reportedly lost in Texas.

Game engines depend heavily on institutional knowledge accumulated across multiple projects. Removing specialists from rendering, gameplay, visual effects, technical art, tools, and artificial intelligence can slow development even when the engine remains technically supported.

Microsoft says its new structure will prioritize individual creators and reduce management layers, but the reported id Software cuts appear to have affected many employees directly responsible for building games. The true impact will become visible through future projects, development schedules, engine improvements, and whether id Tech continues powering new releases.

Can id Software preserve the technical identity of DOOM and id Tech after these cuts, or has Microsoft removed too much specialized knowledge from the studio?