Xbox layoffs hit storied Texas-based 'Doom' developer, id Software

July 7, 2026 - 17:35

Microsoft's ongoing wave of gaming industry layoffs has reached one of its most iconic development teams. id Software, the storied Texas-based studio behind the "Doom" and "Quake" franchises, has been hit with job cuts. The company is a tentpole of the Dallas game development scene, having shaped the first-person shooter genre for over three decades.

The exact number of affected employees remains unclear, but sources confirm that the cuts are part of a broader restructuring within Xbox's gaming division. This follows a pattern of layoffs that have swept through the industry in recent months, with Microsoft previously eliminating thousands of positions across Activision Blizzard and ZeniMax Media. id Software, which was acquired by ZeniMax in 2009, has been a consistent performer for the publisher, most recently shipping the critically acclaimed "Doom Eternal" in 2020.

The layoffs come as a shock to many in the development community, given id's reputation for technical excellence and its role as a flagship studio for Xbox's first-party lineup. The team is currently believed to be working on a new entry in the "Doom" series, though Microsoft has not officially announced the project. For now, the cuts raise questions about the studio's future headcount and the stability of long-term projects in the region.