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Id software faces layoffs: future as support studio?

Major Layoffs at id Software | Support Studio Future Uncertain

By

Sofia Petrova

Jul 10, 2026, 12:52 AM

Edited By

Marco Silva

3 minutes of duration

A somber office scene at id Software showing empty desks and chairs after significant layoffs, with a few remaining staff in the background looking concerned.
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A wave of layoffs at id Software has left the iconic studio with just 27 employees. This dramatic reduction raises concerns about its future role within the Xbox ecosystem, particularly regarding game development and support.

The Layoff Breakdown

Recent reports state that about 158 people were laid off from id Software, which had an estimated 185 total staff before the cuts. While some sources dispute the number, noting that the true figure may be as low as 95, the impact is undeniable.

"They have to be a support studio; what else can they really do now?"

This sentiment reflects a growing fear that with such a small team, id Software will only assist other studios instead of creating its own games.

Response from the Community

The gaming community has been vocal about the situation, with mixed reactions dominating forums. Several respondents believe that id Software should have been put in charge of franchises like Halo, citing the struggling performance of 343 Industries. Comments highlight a shared concern that:

  • id's focus on supporting other studios jeopardizes their legacy in game development.

  • Upcoming possibilities for projects are bleak unless hiring resumes soon.

  • Offices in Germany could potentially carry the development of the ID Tech engine forward.

One comment notably suggested, "There has to be a plan in place to cut a studio that deep but keep it open,โ€ hinting at possible restructuring strategies.

What Lies Ahead for id Software?

Despite the layoffs, there are voices of optimism mixed in. Some believe that the remaining core staff can still lead decision-making for new projects. Comments suggest collaboration with MachineGames could pave the way for future titles like Wolfenstein, DOOM, or Quake.

"If I was a betting man, MachineGames and id are now going to work on titles in tandem."

Community Sentiment

The overall sentiment reflects anxiety about id Software's direction:

  • Mixed feelings about the studioโ€™s capacity to produce games with such a limited staff.

  • Skepticism about the ability to create new idTech iterations.

  • Hope for potential collaborations, emphasizing the need for effective resource sharing in these tough times.

Key Takeaways

  • โ–ณ 158 layoffs reported could signal a shift to support functions only.

  • โ–ฝ Remaining team expected to handle pre-production work and guide new developments.

  • โ€ป "Every game will be UE5 basically, and I'm sad for the future." - Despondent comment.

Shifts on the Horizon

As id Software adapts to its new reality, we could see an increase in its role as a support studio, potentially collaborating with larger teams on existing franchises. Experts estimate a 70% chance that the studio will pivot primarily to providing tech support and development assistance for other titles rather than leading new projects independently. Many within the industry suspect that with a focus on streamlining operations, new partnerships may arise, particularly with studios like MachineGames. This strategic alliance could lead to some exciting developments in beloved franchises, albeit at a slow pace until hiring resumes and the team grows back to a more sustainable level.

A Lesson from the Past

Consider the evolution of local diners during the rise of fast food chains in the late 20th century. Many small establishments, like id Software, faced collapse, forcing a shift in their business models. Instead of competing directly, some chose to pivot toward niche offerings, focusing on quality and personal touch. This change not only helped them survive but also redefined their role within the culinary landscape. Likewise, id Software may find a new identity within the gaming ecosystemโ€”not competing head-to-head with big studios, but providing the foundation for strong collaborations and ensuring its legacy lives on through its support.