Of all the layoffs that came down on Xbox Game Studios developers this week as part of Microsoft and Xbox's 3,200 "reset" cuts and four studio divestments, the ones that hit the DOOM developer id Software were the most shocking to many given the popularity and success of its modern trilogy of games.

It's been reported that well over half of id was axed from Xbox, with 136 developers — 96 at its Texas headquarters and an additional 40 remote workers — let go from the studio. The cuts impacted nearly every department within the developer, including the teams building, maintaining, and improving its id Tech game engine used for a variety of ZeniMax projects.

Individual DOOM devs have shared reactions to the layoffs, though id Software itself hadn't yet shared a response until today. Now it has, with the studio posting a statement to the community on social media to assuage fears about its future under Microsoft and Xbox.

"Thank you for all the support this week. While our studio was impacted, those changes were spread across teams. We still have the crew we need to build the games and tech we're known for," reads id's letter. "The team today is about the same size we were when making DOOM (2016). We have always had a flat studio where everyone is a maker, and we will remain true to that philosophy moving forward."

"We are focused on supporting each other and team members impacted. We're going to keep building the great games and tech that have defined us for the past 35 years, and we're looking forward to seeing you at QuakeCon this August," it added.

Notably, this statement confirms our recent, earlier report that in the wake of the layoffs, id Software is now about the size that it was when it released the 2016 DOOM reboot ten years ago, and that the studio isn't in danger of being closed or split away from Microsoft and Xbox.

It also confirms that the developer will still move forward with new games, though it seems unlikely it will have a chance to explore some of its experimental ideas. Still, I expect that we'll see additional DOOM titles from the team, and that it will continue to iterate upon id Tech for the benefit of Wolfenstein dev MachineGames and other studios.

Ultimately, this news is quite relieving to hear from id Software — though to be clear, I'm not downplaying the severity of the cuts in saying that. On the contrary, I'm glad that the developer still has a future under Xbox's wing despite how significantly it was affected by the dismissals.

The layoffs at id represent a large portion of about 440 total cuts across all of ZeniMax and Bethesda, with other teams hit including Bethesda Game Studios (The Elder Scrolls, Fallout, Starfield) and ZeniMax Online Studios (The Elder Scrolls Online).

Bethesda devs fear that The Elder Scrolls 6 will suffer crunch and delays because of the layoffs, and the reduction in force at ZeniMax Online Studios has led to "shifting" roadmaps for The Elder Scrolls Online. Bethesda's official union, OneBGS, plans to protest against the cuts next week with a "Save Our Devs" march.

What are your thoughts on the layoffs at id Software? Do you feel Microsoft and Xbox went too far with them based on everything we know? Share your take in the comments, and vote in the above poll.

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In response to this week's wave of mass Xbox layoffs from Microsoft that have cut 3,200 roles and four studios from the company, union workers at Bethesda Game Studios — the developer behind Skyrim, Fallout 4, and Starfield, among other titles — are organizing a protest to fight back.

Several public listings for the rally — titled "Save Our Devs" — have been spotted for Bethesda's various different locations, including its Rockville headquarters and offices in Austin, Dallas, and Montreal. These calls to action confirm that unionized OneBGS staffers are coordinating to march on July 15 next week.

"Microsoft and ZeniMax leadership have made the devastating decision to slash over 440 positions across BGS, ZOS, id, ZWU (QA) and ZeniMax corporate (including CTO and CSUR)," wrote the union. "Because we organized and certified our Unions, we have hard-won legal rights and protections that non-unionized studios simply do not have."

"The company wants us to accept this as a done deal and quietly disappear. We won't let that happen. Our next steps are to mobilize," it continued. "We need every single member visible and unified. To that end, we are announcing our Save Our Devs March across all studios on Wednesday July 15th."

In an email sent to union workers seen by Game Developer, OneBGS has reportedly stated that 35 Bethesda Game Studios devs have been let go in the US, with 12 also laid off in Montreal. This roughly lines up with a previous report that about 50 employees have been laid off from the studio.

Reportedly, "this has had a crushing effect on morale" at Bethesda, with devs fearing that The Elder Scrolls 6 will suffer delays and crunch as a result of the redundancies. There are also concerns that support for Fallout 76 may end.

Elsewhere under the ZeniMax and Bethesda banner, the cuts go even deeper. Over 200 developers were laid off from The Elder Scrolls Online studio ZeniMax Online Studios, and well over half of DOOM maker id Software has been axed as well — though it's been reported that the situation there isn't as dire as some say. A small comfort.

Xbox CEO Asha Sharma stated the layoffs are part of a "reset" for the Xbox business after it "overextended" with its ambitions; OneBGS claims that Microsoft referred to them as an "entrepreneurial change in the scope of business," which is a notion it's fighting against as it negotiates to have affected developers brought into open roles across Xbox Game Studios.

"While we push that legal fight forward, Microsoft is still legally required right now to sit down with us for 'Effects Bargaining.' This means we have the right to negotiate exactly how these layoffs impact our people, and we are heading to the table to fight for every single affected worker," it explained.

"We are going to be demanding preferential transfers to force Microsoft to place affected BGS workers into open roles across Xbox and Microsoft first, stronger severance and extended healthcare to ensure no one is financially abandoned, as well as recall rights to ensure our laid-off members are the first ones hired back when BGS expands."

"Stay strong, look out for one another, and we look forward to seeing us all marching together on the 15th," concluded the union. Whether next week's protest has a meaningful impact or not remains to be seen, but ultimately, I hope it helps laid off ZeniMax and Bethesda devs find new opportunities and get the best severance and healthcare packages possible.

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Xbox's cuts over the past week have been brutal; let's not mince words here.

Four studios divested with a possible fifth in progress, over a thousand jobs removed already, with a further 2000 planned. The atmosphere within Xbox right now is dire — a total 180 following the wave of optimism from new CEO Asha Sharma's appointment in spring.

As a result, there are tons of stories coming out about what the fate of Xbox's remaining studios might be. A lot of the discourse has fallen on id Software right now, the beloved maker of DOOM. The studio is an industry staple, and arguably one of the most important and influential brands in the modern gaming canon.

Cuts at id Software have been heavy and painful. Some have claimed the studio's lauded id Tech engine is effectively on ice, and that id is no longer large enough to produce its own games.

What's the truth here? I've been investigating Microsoft's plans for id. Despite the callousness of Microsoft's bean counters, I'm confident the studio will endure.

Microsoft has no plans to shelve id Tech

DOOM and other id Software games have long been powered by the id Tech engine. The engine was designed originally for Quake back in the 90s, and has since powered a huge variety of titles, including open-world games like RAGE, horror games like The Evil Within, Wolfenstein shooters, and, of course, the modern DOOM games. More recently, Machine Games' Indiana Jones and DOOM: The Dark Ages were built on the latest versions of id Tech.

It has a very different feel to Unreal Engine, particularly for first-person games. It's been lauded for its optimization on lower-end hardware stacks, as well as its general versatility.

The cuts to id Software have hit the teams that develop id Tech hard, with decades of expertise wiped out over night. But rumors that there's now virtually nobody working on the engine are false. Sources tell me that there remains a solid stack of expertise for id Tech across id Software itself, and Machine Games. I'm told Microsoft also has no plans to shift either studio forcibly to Unreal Engine, which seems to have become the default for Microsoft and many other core game makers.

Microsoft provided us this statement on the topic: "There are dozens of people working on id Tech across multiple locations. Reports that there’s only one person left in Texas are inaccurate."

In my view, Microsoft would have to be miserably short-sighted to deprecate id Tech. Handing even more power to Unreal Engine opens them up to monopolistic price increases down the line, which would be fiscally irresponsible. Xbox CEO Asha Sharma herself said in her memo to staff that she wants Microsoft to rely less on vendors for things like this. As such, I would argue that Microsoft should invest more in id Tech, not less.

But hey, quarterly thinking is Microsoft's M.O. these days. And it is true that generational talent and knowledge has been carelessly cast aside.

id Software's headcount is now similar to what it was for DOOM (2016)

The other rumor flying around is that id Software has shrunk to a headcount that is untenable for future self-made products, relegating them to "support studio" status. This too, is false.

While the cuts have been alarmingly callous, my understanding is that the remaining id Software core team is roughly the same as it was when DOOM (2016) shipped. DOOM (2016) is arguably the studio's best-ever game in my view, despite the comparatively smaller headcount that produced it. That's not too suggest in any capacity that we should expect the same quality bar without proof ... Microsoft removed mountains of incredible talent from the pool.

Still, I'm not sure exactly what id Software could be making next. There have been reports that id Software had a variety of pitches in the pipeline, including a Perfect Dark reboot and a Western-styled shooter dubbed Ironwood. It's unclear if any of these will be greenlit.

id Software just shipped DOOM: The Dark Ages Revelations, a sizeable story expansion for last year's DOOM prequel. What the studio builds next remains to be seen, but Xbox CEO Asha Sharma specifically called out DOOM and Quake as franchises to invest in.

Microsoft wants to grow its most staple and recognizable IP, which at least in the near term, likely excludes "new" franchise ideas. I'd still like to see what a modern Hexen would look like ... perhaps we'll learn more at Quakecon, which is still going ahead.

It's still been a needlessly brutal exercise

While rumors of id Software's demise have been greatly exaggerated, the layoffs have still been callous and brutal. Staffers with decades of expertise and tenure were let go, despite the success of the modern DOOM trilogy.

Microsoft's gaming aspirations have been heavily reduced over the past week, in what CEO Asha Sharma has been describing as a "reset." This has led to sizeable reductions in teams working on a variety of projects, from The Elder Scrolls to Xbox's social media delivery and platform features. Other studios, like Blizzard, seem to have emerged largely unscathed so far. And Xbox's hardware team building Helix has also been left intact.

Xbox has worked hard to save studios like Undead Labs from outright closure. But, it hasn't prevented Microsoft from expunging hundreds of jobs in other areas, inside Xbox and beyond. Microsoft's huge bets on artificial intelligence haven't really delivered meaningful returns, and the vast capital expenditure on data center buildouts is spooking investors.

At Xbox, the layoffs reflect a challenging time in traditional gaming. Core gaming has seen a contraction owing to increased costs and lack of investment in younger cohorts, which dropped consoles in favor of Roblox on mobile devices, alongside non-gaming activities. Microsoft's lack of investment in Xbox's platform and social features have prevented it from finding new users out of the Gen-X and Gen-Y cohorts, many of whom are starting to age out.

Where Xbox goes from here wholly remains to be seen, but one thing is for sure: DOOM is eternal, and it will outlive Microsoft's bad decision-making.

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Though it launched to scathing criticism and widespread controversy in late 2018 due to lackluster content offerings and severe technical issues, Fallout 76 — Bethesda Game Studios' multiplayer-focused MMO-lite take on the post-apocalyptic RPG series — grew to become fairly popular over time, with the title still enjoying regular content updates and a healthy community eight years later.

In the wake of this week's massive wave of 3,200 Xbox layoffs and four studio divestments, however, there are fears that support for the long-running Appalachian adventure may soon come to an end. Teams under the ZeniMax and Bethesda umbrella have been affected "significantly," including the game's steward, Bethesda Game Studios.

It's been reported that over 50 staffers have been cut from Bethesda across its headquarters in Rockville, Maryland and its office in Dallas, Texas — a reduction in force that has The Elder Scrolls 6 devs fearing crunch on and delays of the long-awaited RPG moving forward. Some also worry that a significant amount of time will have to be spent training contractors to use Bethesda's proprietary tools like the Creation Engine.

Notably, though, one Bethesda developer commented to IGN that they "have no idea how they'll continue updating Fallout 76 without hiring an external studio," which suggests development of the experimental Fallout title could end at some point in the near future.

Another possibility is that Fallout 76 support will ultimately continue, but with its updates and patches being reduced in size and cadence. This appears to be what's happening with The Elder Scrolls Online and ZeniMax Online Studios; content roadmaps for that game are "shifting" after its developer suffered over 200 cuts this week.

We may also see external support for Fallout 76 come, as in a letter sent to staff, Bethesda president Jill Braff emphasized the need for the studio to better support its "strongest franchises" — echoing recent sentiment from Xbox's CEO Asha Sharma that it needs to "move faster" with core IPs like Fallout.

Ending support for the most recent game in the series would arguably go against that goal — especially while the extremely popular Fallout TV show is bringing countless new eyes to the property. With that said, Fallout 76 is now eight years old and isn't massively popular, and with Obsidian now making a new Fallout game, Microsoft may not see much value in continuing to invest resources in the title.

In the end, it's impossible to say what will happen with Fallout 76 moving forward until we hear something official from Microsoft, Xbox, or Bethesda. Based on the aforementioned comment from a developer, though, I do think it's likely that the game's live-service development will change in some way.

Whether it ends up stopping completely or just slowing down remains to be seen, but I can't imagine that this week's cuts won't be reflected in Fallout 76's update cadence somehow.

In the wake of Microsoft's Xbox layoffs, should support for Fallout 76 continue? Or do you think Bethesda should move on from the game? Let me know in the comments, and in the above poll.

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While many different development teams were affected by this week's massive wave of 3,200 Xbox layoffs from Microsoft, studios under the Zenimax and Bethesda banner have reportedly faced some of the most brutal cuts of all. They're going through "a significant overhaul" in their wake, with well over half of DOOM dev id Software axed and over 200 roles removed at The Elder Scrolls Online maker ZeniMax Online Studios.

Bethesda Game Studios — the team behind Skyrim, Fallout 4, Starfield, and the upcoming The Elder Scrolls 6, among other titles — has also been hit, with reports of over 50 of its developers being let go. And according to a new report from IGN, that loss of talent will have a "substantial and cascading effect" on development of the next The Elder Scrolls RPG.

"Their loss will have a substantial and cascading effect on the game and morale of this studio," lamented one Bethesda staffer. "It's been a mix of every discipline: programmers, artists, and designers. One person who's been at the company since Morrowind [the third The Elder Scrolls game released in 2002] was cut," added another.

Those impacted by the layoffs include "key, high-performing people in the trenches" — and those who remain at Bethesda fear that their dismissal will lead to significant complications for The Elder Scrolls 6, including an extensive amount of time spent training contractors, unhealthy amounts of crunch and overtime, and delays for a title that's already reportedly two years away as it is.

"There is a fear that we are going to be replaced by cheaper, contracted labor, or we will hire folks to replace them that will need to be onboarded [due to proprietary tools] resulting in more delays, and we'll need to crunch to make up the time," one Bethesda employee told IGN. Another noted they've heard colleagues have been asked to train new contractors already.

"We've all been very excited and hyped for TES 6 and this has had a crushing effect on morale," said another worker. "We were already running a tight ship and are worried about this delaying the game."

Reportedly, the team working on the RPG will receive support from ZeniMax Online Studios, though it's unclear how extensive of a role the The Elder Scrolls Online studio will play. I can't help but think it will be minor, given the fact that that team just suffered over 200 cuts.

Developers still at Bethesda have been assured they're safe from the 1,600 layoffs of the 3,200 that are coming throughout the next 12 months, though team members worry they'll eventually be let go as well. It's a rational fear, given Microsoft and Xbox's layoff history.

"The 'survivors' were told they're safe from those next 1,600 but it's not entirely reassuring," one asserted. "Even if that's true, who's to say there's not another 1,600 next year after that? It's had the chilling effect of realizing you don't get to retire off your work at Xbox. Your time ends when you quit or are laid off, that's it."

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We have recently heard rumors saying that Zenimax and Bethesda will be 'significantly' impacted by Xbox's company-wide restructuring. So far, these rumors are coming true in depressing ways, as DOOM developer Id Software confirms it has lost over 136 staff, and now the team behind The Elder Scrolls Online, ZeniMax Online is next on the chopping block.

According to a WARN report released by the State of Maryland (via VGC), Zenimax Online has lost 213 employees thanks to Xbox's big "Reset". In addition, Zenimax Media Inc., the company that owns Bethesda Game Studios, has also lost 166 employees.

One of the game developers who previously worked at ZeniMax Online, Andrew Young, has reacted with anger and disappointment at this news, stating that "I’m just so angry today. People will never know the blood, sweat, and tears that went into making ESO or how we basically funded other failing projects while never getting enough resources to really keep up with our release cadence. The team deserved much better."

This news will no doubt fuel the flames of angry fans letting their harsh criticisms and opinions be known to Microsoft about this decision, spurred on by Bethesda's Union, which feels similar sentiments of frustration about the whole situation.

However, the good news is that there are no reports so far that The Elder Scrolls Online MMO is shutting down as a result of these layoffs, but whether or not ZeniMax Online will be able to bounce back from this loss as it did with 2025's layoffs that forced it to cancel its secret "Project Blackbird game" remains to be seen.

There's little doubt that more official reports of the exact damage done to Xbox's game studios will continue to be released as the company's restructuring goes on. So, we'll keep you posted on further developments regarding the ongoing situation at ZeniMax and Bethesda.

When do you think these mass layoffs will end? Do you think Xbox's game studios will be able to bounce back from these layoffs and continue making games? Do you think The Elder Scrolls Online will be able to survive now that ZeniMax Online has lost a considerable amount of manpower?

If you have any thoughts on the matter, please let us know through the poll, the comments section, or our Reddit community.

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Recently, Bethesda's Union expressed frustration that Zenimax and Bethesda, the studio currently in charge of award-winning Fallout, The Elder Scrolls, and DOOM franchises, among others, has suffered job cuts as part of Xbox's company-wide 'Reset', with reports from Bloomberg suggesting it was one of the studios hit the hardest with layoffs.

A day after voicing their displeasure, Bethesda's Union took to Bluesky to call upon gamers and ask them to voice their concerns regarding the biggest wave of layoffs in Xbox's history and the state of Bethesda's future games to Microsoft directly through the Xbox Player Voice feedback platform.

It stated, "Yesterday's layoffs at Bethesda Game Studios were not a cut of '14 layers of management. We lost dozens of programmers, artists, designers, and testers. Many of whom worked at BGS for decades. If Bethesda fans are worried this will harm the quality of our future games, like The Elder Scrolls VI, let Microsoft know!"

One way you can show Microsoft your concern is here through the XBOX Player Voice feedback platform: feedbackportal.microsoft.com/feedback/ide...

— @bethesdaunion.bsky.social (@bethesdaunion.bsky.social.bsky.social) 2026-07-10T10:29:10.778Z

Upon hearing this, players flocked to the platform in droves and unleashed all their pent-up frustrations and criticisms at Microsoft.

Comments ranged from scathing doomsaying, like "If Microsoft does not reverse course they will be destroyed." by Percy Hartley to constructive feedback, like the most upvoted comment (at over 2,500 votes) by Witt Yao, stating, "The layoff of 3,200 workers at XBOX (across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, Obsidian, id Software, and XBOX Game Studios) is unacceptable. This continues a pattern that has led to 10,000+ layoffs at XBOX in as little as two years."

Witt Yao continues, "Multiple studios have been closed or had their futures jeopardized (Compulsion Games, Double Fine, Undead Labs, Ninja Theory, Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Studios) and numerous games have been cancelled. The developers and players agree that This Can Not Continue. A true reset that meets the needs of the XBOX community looks like the following:"

He then advises on how Microsoft could potentially improve the Xbox brand with the following suggestions:

• Transparency for Players - Showcasing games from studios they intend to sell or close weeks later feels bad for players.
• Keep Teams Together - No layoffs for the next 2 years and end studio closures. Studio closures hurt the fans of that studio.
• XBOX is already profitable without reaching a billion people every day - Stop constraining XBOX by the unrealistic profit expectations of the Microsoft Accountability Margin. 
• Trust the Developers - Negotiate in good faith with unions and developers, so they can better represent the needs of both developers and gamers.
• Layoffs are a Failure of Leadership - No executive bonuses when there is a layoff.
• Invest in the Future of Gaming - Invest in the future generation of video game developers instead of unpopular technologies like AI that players don’t want. Game development expertise is the biggest asset of a video game company. 

Stay tuned for more info, as we can keep an eye out for developments and reactions regarding the biggest shake-up within the Xbox brand's history.

Have you voiced your opinions to Microsoft through the Xbox Player Voice Feedback? Do you have destructive or constructive criticisms regarding the Xbox brand's "reset" that has seen over 3,200 jobs terminated across many of Xbox's game studios?

If you have any thoughts on the matter, please let us know through the poll, the comments section, or our Reddit community.

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