Id Software, the studio behind Doom and Quake, cut 136 staff — more than half its workforce — as part of Microsoft's wider layoffs, which saw 1,600 Xbox jobs lost with another 1,600 at risk. The scale of the cuts sparked fears that id's proprietary id-tech engine could be abandoned in favour of Unreal Engine, and that the studio might be reduced to a support role, potentially folded into Call of Duty development. This matters because id is one of the industry's most respected and historic developers, and the cuts appear to contradict Microsoft's stated commitment to its core franchises.

Since the layoffs, id and Microsoft have offered reassurances that clash with the initial gloomy reports. Id issued a statement insisting it retains "the crew we need" to keep making its signature games and technology, while The Verge's Tom Warren reported the studio is already in early development on a new Doom title. Game director Hugo Martin said id has not been "gutted" and is now the same size it was during development of Doom 2016, adding that id Tech remains "alive and well." The article notes Xbox's patchy record of contradicting its own statements, but suggests the discrepancy may partly reflect how triple-A development staffing naturally shrinks between production peaks and quieter pre/post-production phases.