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id Software Layoffs Spark Developer Outcry Over Xbox’s Restructuring

8/10/2026, 11:19:18 AM

Layoffs at id Software and Immediate Impact

In July 2024 Microsoft announced a reduction of 136 positions at id Software, the studio behind the *Doom* franchise. Hays said creating a AAA title with “half the people” is “impossible.”

Background: Xbox Restructuring

The first wave affected 1,600 staff on the announcement day, with an additional 1,600 positions slated for removal throughout the fiscal year. Management has framed the changes as a move toward a new business model that emphasizes Game Pass subscriptions, though Hays expressed uncertainty about how the model will affect development.

Official Statement from id Software

On July 10, id Software issued a statement thanking fans and acknowledging that the studio had been “impacted.”

Developer Criticism

He argued that cutting “half of a studio” without accounting for the collaborative process shows a lack of understanding of game development as an art form. Hays also questioned the impact of Game Pass on sales metrics, suggesting that “poor sales” under the subscription model do not reflect the quality or success of individual titles.

Verbatim Quotes

  • “It's hard to make a game that is AAA, that's like we've done before, with half the people. And by hard, I mean impossible,” — Chris Hays
  • “ Asked to elaborate on why Xbox and Microsoft don't understand art, Hays said, "If you cut half of a studio and don't actually take in account how it's made, you don't understand that the cohesion between our teams was what was important.” — Chris Hays