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Microsoft cuts 136 id Software staff, halts AAA plans

8/10/2026

34 7 Full Breakdown

Summary

Story summary

Microsoft’s July 2026 layoffs cut 136 id Software staff, shrinking the studio below Doom 2016 size.
Lead services programmer Chris Hays said the cuts make a new AAA game impossible, limiting work to Xbox 360-era scope.
Xbox CEO Asha Sharma called the cuts the most significant Xbox restructure, affecting 1,600 staff on day one and another 1,600 later.

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Story summary

Microsoft’s July 2026 layoffs cut 136 id Software staff, shrinking the studio below Doom 2016 size.
Lead services programmer Chris Hays said the cuts make a new AAA game impossible, limiting work to Xbox 360-era scope.
Xbox CEO Asha Sharma called the cuts the most significant Xbox restructure, affecting 1,600 staff on day one and another 1,600 later.