Xbox Eliminates the idTech Engine Team in Its Largest Restructure Ever

Microsoft eliminates the idTech engine team at id Software as part of 3,200 layoffs — the biggest restructure in Xbox history.

Microsoft has fired most — if not all — of the developers working on idTech, the legendary game engine that powered Doom, Quake, and Wolfenstein, as part of the largest restructuring in Xbox history.

The cuts come under new Xbox CEO Asha Sharma, who told employees the company is eliminating approximately 3,200 roles throughout fiscal year 2027. Around 1,600 of those layoffs took effect today, and four studios will be transferred to new management.

The idTech team was hit especially hard at id Software, the studio that created the engine. Apogee founder Scott Miller confirmed the news on social media, and 20-year id veteran Michael Maynard posted on LinkedIn that "most (if not all) coders" at id Software were let go.

The layoffs extend across multiple Xbox studios. Obsidian Entertainment reportedly lost between 60 and 70 workers, while Bethesda and Zenimax Online Studios were also affected. The idTech engine itself ranks among the most important game technologies ever built — its codebase has spawned countless games and influenced engines used across the industry for decades.

Sources: GameFromScratch · GamesIndustry.biz · Xbox CEO Announcement · Rebs Gaming / Michael Maynard