id Software has released a statement addressing the recent layoffs impacting Microsoft's gaming division, asserting that the studio is now at a similar staff size to when it developed the acclaimed 2016 Doom reboot. The statement aims to quell concerns that the studio's ability to create new games might be compromised.

On Wednesday, a WARN notice filed in Texas revealed that 96 employees at id Software's Richardson, Texas, location were laid off, with an additional 40 remote positions eliminated. These cuts are part of a broader restructuring within Xbox, initiated by new CEO Asha Sharma. This follows an initial wave of 1,600 job losses on Monday, with another 1,600 expected throughout the current fiscal year, impacting multiple Xbox studios.

In its official statement, id Software expressed gratitude for the support it has received and acknowledged the impact of the changes on its teams. The studio emphasized that it retains the necessary personnel to develop its signature games and technology. "The team today is about the same size we were when making Doom 2016," the statement read. "We have always had a flat studio where everyone is a maker, and we will remain true to that philosophy moving forward. We are focused on supporting each other and the team members impacted. We're going to keep building the great games and tech that have defined us for the past 35 years, and we're looking forward to seeing you at QuakeCon this August."

Concerns about the future of id Tech, the proprietary game engine used by id Software and MachineGames, have also been addressed. Xbox confirmed to IGN that "dozens of people working on id Tech across multiple locations" are dedicated to its development, refuting earlier reports that suggested only one person remained in Texas working on the engine.

While id Software currently has no officially announced projects, it is reportedly prototyping several potential games. Reports suggest that prior to the layoffs, the studio was exploring new game concepts, including an original intellectual property in the vein of John Wick, a new Perfect Dark title, and a multiplayer or cooperative Doom game.

Elsewhere within Bethesda, the broader strategy is shifting towards closer collaboration among its studios and a focus on its most prominent franchises, such as Halo, Minecraft, Fallout, and The Elder Scrolls. Bethesda's head, Jill Braff, informed staff that these changes are necessary to ensure a more stable business foundation and sustainable growth, enabling continued investment in franchises and players.

Former id Software co-founders John Romero and John Carmack also commented on the situation. Romero offered support to affected employees and stressed the importance of preserving the legacy of the studio's iconic franchises. Carmack, while expressing sadness, questioned whether the commercial performance of id Software's recent games was sufficient to prevent the layoffs.