What sense can we make of the madness at id Software?

Microsoft laid off 1,600 people this week, but one cut stung more than most: id Software, the studio behind Doom and Quake, lost 136 employees—more than half its workforce.

Rumors immediately swirled that id Tech, the engine powering those games, might be mothballed. That the next Doom could run on Unreal Engine. That id was being reduced to a support studio for Call of Duty.

Then came conflicting reports.

What the Studio Says

id Software issued a statement saying it still has "the crew we need to build the games and tech we're known for." The Verge's Tom Warren reported the team is "now in the early stages of a new Doom game." Game Director Hugo Martin explicitly denied the studio was "gutted."

"We're the size we were when we made Doom 2016, and id Tech is very much alive and well."

Martin's quote is meant to reassure, but it also raises a question: how can a studio that just lost more than half its people be the same size as when it made one of the best shooters ever?

The Cynical Logic Behind the Math

Modern triple-A games take four to five years to develop. Teams are huge—often hundreds of people—but only during the peak production phase. Pre-production and post-release support require fewer hands.

id just shipped the Revelations expansion for Doom: The Dark Ages. That's a natural end point. If the next Doom is still in early concepting, Xbox might only need a skeleton crew for the next one or two years.

Why pay 136 people $150,000 a year each if you don't need them right now?

That's the spreadsheet logic. It's not good management. It's not fair to the people laid off. But it explains why a studio can lose half its staff and still "have the crew we need."

The Hidden Costs

Even if the numbers work on paper, the real cost is harder to measure. Team morale takes a hit when half your colleagues vanish overnight, especially after launching a well-reviewed expansion. Institutional experience walks out the door. And id Tech relies on specialized engineers—you can't just rehire that knowledge.

Reports indicate that 146 of the 158 Texas layoffs were union members. This wasn't just cost-cutting; it was a union-busting move.

What This Means for the Next Doom

Xbox has publicly said it's "refocusing" on core franchises, including Doom and Quake. A new Doom is reportedly in early development. If the reduced team can pull off what Doom 2016 did with a similar headcount, the games might be fine.

But the trust between Xbox and its developers—and between Xbox and the players who love these studios—has taken a real hit. When you announce a new Senua game and then cut ties with the studio within a week, words stop meaning much.

id Software's next game will tell us more than any statement ever could.