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Microsoft Slashes Half of Doom Studio id Software in Mass Xbox Layoffs
Ars Technica·Wednesday, 8 July 2026
Around 50 percent of staff at id Software, the studio behind the Doom franchise, have been laid off as part of Microsoft's broader Xbox cuts. One source put the number at more than 90 redundancies, with the QA department hit particularly hard. Bethesda was also reported to be significantly affected.
Why It Matters
Microsoft's gaming layoffs are the biggest in the industry right now and signal that even iconic game studios are not safe from cost-cutting driven by AI investment pressures.
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