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Id Software Cuts 136 Jobs in Xbox Business Reset

Founders have publicly questioned Microsoft’s stewardship after reports that Minecraft profits were used to support other Xbox studios.

Overview

  • A Texas WARN filing and company reports show id Software eliminated 96 roles in Richardson and 40 remote positions this week, a total of 136 job cuts.
  • The layoffs came the same week id released the Doom: The Dark Ages expansion, turning a product launch into a moment of staff uncertainty and low morale.
  • Co‑founder John Carmack wrote on X that his earlier faith that “Microsoft will probably be a good steward” is fading and said he suspects id was a marginal business for Microsoft.
  • Reporting cited by founders includes a Bloomberg claim that profits from Minecraft were redirected to support less profitable Xbox studios, a point founders used to explain the cuts.
  • The moves raise questions about long‑term support for id’s franchises, staff continuity ahead of a QuakeCon founders’ reunion, and how larger publishers balance legacy studios with commercial performance.