id Software, the studio behind the Doom and Quake franchises, has issued a statement denying reports that recent Xbox layoffs have severely impacted its operations. Co-studio director Hugo Martin addressed these concerns during a recent Bethesda-hosted Doom livestream, asserting that the studio has not been "nerfed into the ground and gutted."

Reports emerged following Microsoft's extensive workforce reductions, suggesting that id Software had lost a significant portion of its staff, reducing its numbers to 49 employees and potentially reclassifying it as a support studio. Concerns were also raised about the future of the proprietary id Tech engine due to apparent layoffs among its engineers.

Martin clarified these reports, stating on the livestream, "There's been reports that we've been nerfed into the ground and gutted and we have 50 people, and that's not true." He elaborated that the studio's current size is comparable to when it developed Doom (2016). Furthermore, he confirmed that the id Tech engine remains active, with engineers located both in Frankfurt and at MachineGames, highlighting ongoing collaboration. "So id Tech is there, the Doom team is here, and we're excited to share with you guys more of what we're working on in the future when it is appropriate and approved," Martin added.

This sentiment was echoed by id Software's official social media account, which previously stated the studio "still have the crew we need to build the games."

The studio director also expressed a desire to continue the narrative arc of the Doom Slayer, potentially linking the origins explored in Doom: The Dark Ages to the sarcophagus seen at the beginning of Doom (2016). This hope for narrative continuity follows the recent release of the Revelations expansion for Doom: The Dark Ages, which introduced new gameplay mechanics, including an upgradeable Chain Spear weapon, aiming to bring back the faster pace reminiscent of Doom Eternal.

Microsoft's restructuring of its gaming division has led to widespread layoffs affecting numerous studios. While some studios have separated from Xbox, further reductions are anticipated as part of a larger plan that has created significant upheaval within the Xbox division.