The scale of Microsoft's Xbox cuts at id Software, the legendary studio behind Doom and Quake, has become clearer, and it is severe. According to an official WARN notice filed in Texas, 136 of the roughly 185 people working at id Software as of December 2025 have been made redundant, leaving fewer than 50 staff. With so few employees remaining — and reports that senior engine and coding positions were heavily hit — the studio's ability to develop a full-scale game independently is now in serious doubt, raising questions over its future role.

The cuts landed just as id Software was between projects, having launched Doom: The Dark Ages last year and its Revelations expansion only this week. Several early game concepts have reportedly been abandoned, including "Fury", a John Wick-style "Gun Fu" original with sci-fi and noir elements; a new Perfect Dark title; "Ironwood", a Westworld-inspired survival game; and a multiplayer Doom, while no one is said to be working on Quake. Former staff described the layoffs as "a bloodbath", and commentators suggest id may be reduced to an Xbox support studio, possibly aiding MachineGames on a rumoured new Wolfenstein. The cuts form part of a wider restructuring that will see around 3,200 Xbox jobs lost and roughly five studios leaving the roster.