id Software, the legendary studio behind Doom and Quake, has been severely impacted by Microsoft's recent Xbox restructuring, with 136 employees laid off, according to a WARN notice filed in Texas. This represents a significant reduction, leaving fewer than 50 of the studio's approximately 185 employees from December 2023.
Sources speaking to GamesBeat described the layoffs as a "bloodbath," with one former employee expressing shock at the scale and the loss of "decades of knowledge." The cuts come as id Software was reportedly exploring new game ideas following the release of Doom: The Dark Ages and its recent expansion, Revelations. Among the concepts discussed was a "John Wick-style" original game codenamed Fury, which blended sci-fi, noir, and gangster elements with a focus on "Gun Fu" combat. Another pitch was for a new entry in the Perfect Dark franchise, a series that has seen previous development struggles. An idea for a Westworld-inspired survival game called Ironwood and a multiplayer/co-op version of Doom were also reportedly considered. However, there is no indication that any Quake-related projects are currently in development.
With its drastically reduced staff, id Software's capacity to develop full-scale original games is now in question. Historically, the studio has also been renowned for its proprietary id Tech engine, which powers its own titles and those of other studios like MachineGames. Xbox leadership has spoken about streamlining tool usage and reducing external engine costs, potentially indicating a future focus on the id Tech engine. However, the significant number of layoffs, including many in senior engine development roles, raises questions about this direction. The studio's new reality appears to align with former VFX artist Derek Best's sentiment that id Software may be relegated to a support role for other studios, possibly assisting MachineGames with a rumored new Wolfenstein title.
This situation marks a somber chapter for a studio that has been instrumental in shaping the gaming industry. The layoffs are part of a broader wave of job cuts at Xbox, which has seen approximately 3,200 employees affected across the division. This restructuring has also led to other studios like Double Fine and Compulsion Games becoming independent, while Ninja Theory and Undead Labs are under new leadership, and Arkane is reportedly in divestment talks.