id Software loses about 50% of staff in Xbox layoffs, co-director says

About 50% of id Software’s workforce exited during Xbox’s restructuring, studio co-director Marty Stratton said. A deliberate effort had been made, he said, to preserve its ability to develop both games and technology after the departures.

Stratton spoke at a press event earlier that week for Doom: The Dark Ages – Revelations, an expansion to the game, IGN said in its October 31 report. He gave no absolute job count or precise cut dates with his estimate.

The broader Xbox restructuring

Ars Technica’s 7 July 2026 report said Xbox CEO Asha Sharma had announced plans for 3,200 layoffs across the division the previous day. Sharma focused on cuts to the platform team and redundant layers of middle management.

Bethesda President Jill Braff told employees the company needed to focus on its strongest franchises, strengthen its business and return to sustainable growth so it could keep investing in its games and players.

In a 22 September 2026 employee message, Xbox announced another 268 role eliminations across its studios, management and central functions. Xbox said the reorganization aimed to strengthen its games by operating fewer business units, aligning groups already working closely together and focusing its publishing expertise.

Stratton outlines closer technology work and plans for id’s own games

id Software and MachineGames, the developer of recent Wolfenstein games, are fellow Bethesda and Xbox studios. Their technology partnership predates the layoffs: MachineGames has used id Software’s id Tech engine—the core software used to build and run its games—for every game it has made, IGN said.

Stratton said the studios were working more closely than ever on technology development through an initiative begun earlier in 2026, before the layoffs. He described talented engineers on both teams and was optimistic about their work ahead, without naming a joint game or giving a delivery date.

Former id Software producer Andrew Willis gave a less optimistic account of the departures in comments published by Windows Central on 19 August 2026. Staff were told not to come into the office on 6 July, then joined a group call where Stratton said their positions had been eliminated and that the decision did not reflect their performance. The departures caused a substantial loss of accumulated knowledge, he said,, while acknowledging that talented colleagues remained.

In the same article, Stratton acknowledged the pain of the layoffs and said his comments about the future were not meant to diminish it. id Software would continue making and leading its own games and developing id Tech. The studio’s future would be judged by what it delivered to players and whether that work met expectations.