Layoffs
Ongoing coverage on Layoffs.
Latest coverage
Id Software co-founder John Carmack "can’t muster anger or outrage" over Xbox gutting the Doom studio, but does say it'll "dampen the mood of the founder reunion"
Id Software co-founder John Carmack expressed sadness but not anger over the recent layoffs at the studio, suggesting that the company may have been a marginal business for Microsoft. He believes games need to succeed financially to continue being produced and that executives aren't always the problem, though he acknowledges the possibility. Carmack hopes the studio can recover despite the uncertain future.
Update: Microsoft Says id Tech Expertise Survived id Software’s Brutal Layoffs
id Software is reportedly in disarray following significant layoffs, with only a small number of employees remaining who are familiar with the id Tech engine. Despite the staff reductions, Microsoft still intends to leverage the id Tech expertise.
Bethesda union staff to march outside studios over Xbox layoffs: 'The company wants us to accept this as a done…
Bethesda developers, organized as the OneBGS union, are planning a protest march across studios on July 15th to oppose recent layoffs by Xbox. The union criticizes these layoffs as a recurring issue and aims to show management the adverse impact on remaining staff and studio talent, citing significant staff reductions at Zenimax Online Studios and id Software, and the closure of studios responsible for games like Hi-Fi Rush and Prey.
id Software co-founder says "my 'Microsoft will probably be a good steward of the brand' statement isn't aging well" after the Doom maker lost 136 of its 185 staff to layoffs
id Software co-founder John Carmack commented on the significant layoffs at the studio under Microsoft, stating his previous belief that Microsoft would be a good steward of the brand is not aging well. He suspects id Software was a marginal business for Microsoft, with Minecraft's profits potentially subsidizing other studios. Carmack also reflected on game development needing to succeed financially, not just be beloved, and speculated on alternative strategies that could have improved id's financial performance.
Own goal specialist Xbox rifles another into the roof of the net - Patch Notes #60
Xbox announced significant layoffs, impacting approximately 3,200 employees across various studios including id Software, ZeniMax Online Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. Xbox boss Asha Sharma cited a need to eliminate management layers and create a flatter organization, though many of the affected employees are senior staff integral to game production. This marks the fifth major round of layoffs at Xbox in three years, with unions like CWA Canada criticizing Microsoft's handling of the situation.
Id Software founder John Carmack mourns layoffs: "Games need to succeed, not just be beloved"
Id Software co-founder John Carmack expressed sadness over recent layoffs affecting over half of the studio's workforce, attributing the cuts to increasing business pressures rather than executive malice. He reflected on the need for games to be commercially successful, not just critically acclaimed, to ensure long-term production, and pondered potential design or marketing changes that could have improved Id's financial standing.
Elder Scrolls 6 faces delays as Microsoft lays off people that were making it
Bethesda Game Studios employees are concerned that The Elder Scrolls 6 may face significant delays following recent layoffs impacting over 50 staff members, including a 27-year veteran. These cuts, part of broader Xbox layoffs, have raised fears about project timelines, potential reliance on contract labor, and a decline in studio morale, especially after the reception of Starfield.
"We are the best allies to game devs": Skyrim modder shows solidarity with laid off Bethesda workers by draping union logos across Tamriel
A Skyrim modder named Elianora has created a mod called 'United Front' to show solidarity with recently laid-off Bethesda workers. The mod adds union logos to shields and banners within the game, encouraging players to raise awareness for the 'Save Our Devs March' organized by the OneBGS union. This action aims to send a message to Microsoft regarding the recent layoffs affecting Bethesda and other Xbox-owned studios.
'We mean business:' Xbox union workers fighting back with 'Save Our Devs' rally on July 15
Unionized workers at Bethesda Game Studios, under the OneBGS banner, are organizing a 'Save Our Devs' rally on July 15 to protest recent mass layoffs across Xbox and ZeniMax studios. The union aims to negotiate preferential transfers, stronger severance packages, and recall rights for affected employees, rejecting Microsoft's framing of the cuts as an 'entrepreneurial change'.
Assassin's Creed Black Flag Resynced developers facing layoffs
Ubisoft Barcelona is laying off 51 employees, including QA lead Isabel Codina García, at the end of July, following broader layoffs at Ubisoft last month. These cuts come despite the recent successful launch of Assassin's Creed Black Flag Resynced. A Spanish union has called for strikes to protest the layoffs and demand better job protections.
Assassin Creed Black Flag Resynced developers facing layoffs
Ubisoft Barcelona is laying off 51 employees, including QA lead Isabel Codina García, at the end of July, despite the successful launch of Assassin's Creed Black Flag Resynced. Spanish union La Confederación General del Trabajo has called for strikes to demand better job protections and the retention of laid-off workers. Anonymous employees cite a pattern of mistreatment and a top-down management culture contributing to these workforce reductions.
Layoffs begin at Ubisoft Barcelona following Assassin's Creed Black Flag Resynced launch
Ubisoft Barcelona has laid off 51 employees following the launch of Assassin's Creed Black Flag Resynced. The studio will now focus exclusively on the Rainbow Six franchise. This move is part of a larger restructuring effort by Ubisoft to save €200 million and improve game quality.
Evening Reading - July 9, 2026
This edition of Shacknews Evening Reading covers various gaming news and features, including reviews for Assassin's Creed IV: Black Flag and Digimon Story, discussions on 2XKO and Guilty Gear Strive, and mentions of Microsoft's potential new Quake game. It also touches on industry layoffs and includes personal anecdotes and internet content.
Ubisoft Barcelona Faces Layoffs After Assassin’s Creed Black Flag Resynced Launch
Ubisoft Barcelona is experiencing layoffs despite the successful launch of Assassin's Creed Black Flag Resynced. Several employees, including QA lead Isabel Codina García, have been affected by these redundancies. The studio proposed new Assassin's Creed projects, but Vantage Studios indicated no further mandates for the Barcelona location, leading to significant workforce reduction and employee protests.
Avowed 2 Has Not Been Cancelled Following Layoffs at Obsidian – Rumor
Despite recent layoffs at Obsidian Entertainment and rumors of cancellation, former co-founder Chris Avellone has stated that Avowed 2 is still in development and the studio hopes to "re-pitch" the concept. While some projects are being re-evaluated, expansions for The Outer Worlds 2 are still planned, and Grounded is continuing development.
Former MindsEye Studio Employees to Protest “All-Expenses-Paid Playtest Day”
Former employees of Build a Rocket Boy are planning a protest outside the studio's Edinburgh office regarding an "all-expenses-paid playtest day" for their Arcadia platform, occurring shortly after significant layoffs. The Independent Workers Union of Great Britain is organizing the protest, which aims to highlight the studio's decision to host a community event despite recent staff reductions.
id Software Now Has “Roughly the Same” Number of Workers as When it Made DOOM (2016) – Rumor
Reports suggest id Software's current workforce is similar to when it developed DOOM (2016), despite rumors of significant layoffs impacting its engine development and QA teams. Microsoft confirmed that dozens of employees work on the id Tech engine across multiple locations, refuting claims of a drastically reduced headcount. The studio will continue to use its proprietary id Tech engine, with no plans from Xbox to switch to Unreal Engine.
Quoteworthy
John Carmack commented on recent layoffs at id Software, expressing that his previous statement about Microsoft being a good steward of the brand is not holding up well. The article touches upon the significant job cuts impacting the studio.
Comings and Goings
GameSpot has experienced another round of layoffs, while Bethesda union workers are planning a protest against recent mass layoffs. These events highlight ongoing workforce reductions within the gaming industry.
Days after announcing mass layoffs, Xbox CEO Asha Sharma tapped to advise the Federal Reserve on jobs
Xbox CEO Asha Sharma has been appointed to advise the Federal Reserve on job-related matters, just days after Xbox announced significant layoffs. This appointment highlights her expertise in employment trends and workforce dynamics.