This week saw Microsoft and Xbox initiate the single biggest layoff wave in the gaming brand’s history, with 3,200 Xbox and game development roles cut — 1,600 immediately, and another 1,600 throughout the next 12 months — as well as four studios divested from the Xbox Game Studios publishing division.
Alongside those teams and developers at ZeniMax and Bethesda, one studio that’s been hit especially hard by the layoffs is id Software, the steward of the iconic and legendary shooter franchise DOOM. It’s come to light that roughly half of the entire studio has been discharged, including both game devs and staffers working on its id Tech game engines.
Given the strong success of the DOOM 2016 reboot, DOOM Eternal, and last year’s DOOM: The Dark Ages — which has a new Revelations DLC coming out today, one day after the cuts — the fact that id Software has been affected so significantly by the Xbox layoffs has come as a shock to many. Cuts to the id Tech team are surprising as well, as the studio’s engine has historically run well and has been used for non-DOOM projects like the Wolfenstein games and Indiana Jones and the Great Circle.
That shock extends to id’s developers themselves, many of whom have taken to social media platforms to express their astonishment and frustrations with the layoffs. One such employee, gameplay animator Skai Chow, has reacted to them with a scathing message for both Microsoft as well as for those “celebrating and worshipping” the cuts as a “move in the right direction.”
For your kind attention.We hope our pain was worth it. pic.twitter.com/nwzJmXWZ2KJuly 7, 2026
“For my friends and followers who don’t work in game development celebrating and worshipping that the layoffs yesterday were ‘necessary for change and a move in the right direction’…I sure hope the sixth round of layoffs is worth our pain and your pleasure,” wrote Chow. “After all, things are gonna be different this time around. Right?”
Chow’s post features an image that highlights five previous rounds of Microsoft and Xbox layoffs that have come down since early 2023, including 10,000 cuts in January of that year, 1,900 discharges at the start of 2024, the closure of several ZeniMax and Bethesda studios in May that year, and The Initiative and several projects being shuttered in 2025. “We hope our pain was worth it,” it’s captioned.
The new Xbox CEO Asha Sharma contends that these latest cuts were a difficult but necessary move as part of a “reset” for the brand after it “overextended” with lots of expansion and “overly complex” internal systems.
Regardless of how true that ultimately is or isn’t, I can’t blame Chow or any other developer for feeling angry and bitter. Throughout the last four years, several thousand layoffs have wracked both Xbox and the wider gaming industry at large following overinvestment in gaming during the pandemic, resulting in extreme volatility and repeated devastating losses of talent.
I don’t know what the right path forward is, especially with tariffs and the RAM crisis further complicating matters, but it’s clear that the business as it is now isn’t sustainable — and Chow is correct to highlight that layoffs haven’t yet solved the problem. We can only hope for brighter times as Xbox and the industry reorganize.
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