Microsoft Restructuring Cuts id Software Staff by Half as ZeniMax Pivots to Major IPs
The cuts at id Software, the studio that defined the DOOM and Quake franchises, come just as ZeniMax announced a strategy centered on those same IPs, raising questions about how the studio will sustain its output with half its workforce gone.
Key Facts
- Microsoft announced layoffs of approximately 4,800 employees, or 2.1% of its workforce, on July 6, 2026.
- id Software, developer of DOOM and Quake, lost roughly half its staff, with reports of 95 layoffs out of approximately 185 employees.
- ZeniMax Media will shift its strategy to focus on major franchises including Fallout, The Elder Scrolls, DOOM, Quake, and Wolfenstein.
- Arkane Studios in Lyon is being considered for sale or spin-out as part of the restructuring.
- Xbox CEO Asha Sharma stated that no announced first-party titles or projects will be cancelled.
Reporting from 3 sources: GameBusiness.jp, GIGAZINE, Game Spark.
Microsoft's Xbox division is undergoing a large-scale restructuring that will cut approximately 3,200 jobs over the next year, part of a broader layoff of about 4,800 employees across the company. As part of the reorganization, ZeniMax Media will shift its strategy to focus on major franchises including Fallout, The Elder Scrolls, DOOM, Quake, and Wolfenstein, according to a Bloomberg report cited by multiple outlets. The restructuring has hit id Software, the studio behind DOOM and Quake, particularly hard. Reports from Game Developer and Game Informer, cited by GIGAZINE and GameSpark, indicate that roughly half of id Software's staff has been laid off, with former Bethesda executive Jeff Gardiner reporting 95 layoffs out of an estimated 185 employees. Veteran developers including principal concept artist Colin Geller, animator Chris Street, and principal programmer Dustin Land have confirmed their departures. The quality assurance department was reportedly devastated. Arkane Studios in Lyon is also under review, with Microsoft considering strategic options including a sale or spin-out, though French labor laws may slow the process. Xbox CEO Asha Sharma told employees in an internal memo that no announced first-party titles will be cancelled.
The layoffs at id Software were so extensive that the quality assurance department was effectively eliminated, according to sources cited by Game Developer. Former Bethesda studio head Jeff Gardiner, now CEO of his own studio, reported that 95 people were laid off at id Software, while an additional 35 layoffs may have occurred at Bethesda Game Studios. id Software had approximately 185 employees as of late 2025, per Aftermath. Among those who confirmed their departure were Colin Geller, principal concept artist on the DOOM reboot trilogy; Chris Street, animator on DOOM Eternal and DOOM: The Dark Ages; and Dustin Land, a principal programmer who had been at the studio for 18 years. id Software co-founder John Romero, who left the studio in 1996, posted a statement on Bluesky expressing sympathy and calling the situation 'strange and painful.' He noted that the studio's recent games were made 'with skill and respect' for the legacy of DOOM and Quake. Bethesda Softworks president Jill Braff explained the restructuring in an email, saying the company is moving from a model focused on independent studios to one centered on the strongest franchises. The DOOM: The Dark Ages expansion Revelations launched on July 7, the day after the layoff announcement.
Synthesized by Yomimono from the 3 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.