Microsoft's latest layoffs have heavily impacted Bethesda and id Software, with reports of up to half the team behind The Elder Scrolls Online being let go, as Bethesda president Jill Braff signals a strategic shift to focus on the company's strongest franchises.
<p>In announcing <a href="https://arstechnica.com/gaming/2026/07/the-incredible-shrinking-xbox-five-studios-3200-employees-let-go/">plans for 3,200 layoffs across the Xbox division</a> yesterday, CEO Asha Sharma focused on discussing cuts to the Xbox platform team and redundant layers of middle management. Now, though, word is filtering out about significant staffing cuts at remaining Microsoft-owned game developers including id Software and Bethesda.</p>
<p>Apogee and 3D Realms founder Scott Miller—who <a href="https://www.mobygames.com/company/148/apogee-software-ltd/games/">helped publish some of id's earliest games</a>—<a href="https://x.com/ScottApogee/status/2074198967550685268">wrote on social media</a> yesterday of "insider reports" that a majority of id had been laid off, "including most (if not all) coders." And last night, veteran programmer Michael Maynard—whose <a href="https://www.mobygames.com/person/5506/michael-maynard/credits/">credits at id Software</a> date back to 2011's <em>Rage</em>—<a href="https://www.linkedin.com/feed/update/urn:li:activity:7480085627364114432/">wrote on LinkedIn</a> that he was among the "roughly 50%" of the id team that was let go Monday.</p>
<p><a href="https://www.gamedeveloper.com/business/report-around-half-of-the-id-software-team-have-been-laid-off">Game Developer cites</a> "multiple anonymous sources" in confirming those reports, saying the redundancies amount to about 90 employees at the <em>Doom</em> studio. The first DLC pack for last year's <em>Doom: The Dark Ages</em> <a href="https://store.steampowered.com/agecheck/app/3469450/">launched earlier today</a>.</p><p><a href="https://arstechnica.com/gaming/2026/07/bethesda-id-software-reportedly-hit-hard-by-microsoft-layoffs/">Read full article</a></p>
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# Bethesda, id Software reportedly hit hard by Microsoft layoffs
Source: [https://arstechnica.com/gaming/2026/07/bethesda-id-software-reportedly-hit-hard-by-microsoft-layoffs/](https://arstechnica.com/gaming/2026/07/bethesda-id-software-reportedly-hit-hard-by-microsoft-layoffs/)
“Just really sad that this is how id Software, the pioneer/innovator of FPS action games is relegated to just another ‘reorganization’ of assets,” Maynard wrote in his LinkedIn post\.
[](https://cdn.arstechnica.net/wp-content/uploads/2026/07/eso.avif)
As much as half of the team behind*The Elder Scrolls Online*has been let go, according to a Kotaku report\.
Credit: Zenimax Online
As much as half of the team behind*The Elder Scrolls Online*has been let go, according to a Kotaku report\.Credit: Zenimax Online
Meanwhile,[IGN obtained an email](https://www.ign.com/articles/we-need-to-change-course-bethesda-boss-tells-staff-the-company-must-focus-on-our-strongest-franchises-as-xbox-layoffs-hit-hard)from[Bethesda President Jill Braff](https://www.linkedin.com/in/jillbraff/)to staffers expressing “sincere gratitude” to “a number of our colleagues” that were impacted by the layoffs\. IGN says employees at Bethesda studios were “hit particularly hard” by the layoffs, while remaining staffers are “facing an uncertain future” as Microsoft said it is planning to lay off 1,600 more employees throughout this fiscal year \(in addition to 1,600 let go yesterday\)\.
The changes in strategy and headcount mean that Bethesda “need\[s\] to change course,” Braff wrote in her email, transforming into a company “that focuses on our strongest franchises\.” That could be[bad news for newer franchises like*Starfield*](https://www.ign.com/articles/fans-mourn-starfield-amid-xbox-layoffs-with-bethesda-now-seemingly-focused-on-fallout-elder-scrolls-wolfenstein-doom-and-quake)and for*The Elder Scrolls Online*, with the latter game losing as much as half of its developers,[according to a Kotaku report](https://kotaku.com/elder-scrolls-online-team-seemingly-halved-xbox-layoffs-2000712920)\.
“We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players,” Braff continued in her message to employees\. “I know that doesn’t make a day like today any easier\.”
id Software, the developer of Doom, reportedly laid off around 50% of its staff as part of broader Xbox layoffs, with sources confirming over 90 redundancies and significant impact on the QA department.
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