Microsoft's Xbox division has confirmed the layoff of 136 workers at id Software, a notable studio known for its development of the Doom franchise. This decision follows a WARN notice filed in Texas, which revealed that 158 employees were let go in total, including 96 at the Richardson office of id Software and 40 remote workers. Additionally, 22 layoffs occurred at Bethesda Game Studios in Austin.

The layoffs represent approximately 50% of the workforce at id Software, with sources indicating that the quality assurance (QA) department was particularly affected. An anonymous employee expressed frustration over the restructuring, suggesting that the studio is being dismantled in the name of asset reorganization.

This news comes as Xbox prepares to cut 3,200 roles across its gaming division, with the first phase involving 1,600 layoffs. In an internal email, Bethesda president Jill Braff outlined a shift in strategy, focusing on major franchises like Fallout, The Elder Scrolls, and Doom, aiming to enhance collaboration among development teams.

While the layoffs have sparked concerns among employees, Bethesda has assured that no studios will be closed, emphasizing a commitment to future growth and a streamlined approach to content development. Microsoft has yet to provide an official comment on the layoffs.

The gaming industry continues to face challenges, and these layoffs at id Software highlight the ongoing adjustments within major companies like Microsoft as they navigate market demands and operational efficiencies.