# Xbox layoffs reportedly gut Id Software’s coding team and cut 60-70 developers from Obsidian

> **Open Intelligence Dossier** · First detected: 2026-07-07 12:07 UTC · Category: Technology

## Executive Summary
Xbox-led layoffs are significantly reducing staff at Id Software and Obsidian Entertainment, according to industry reports.

## Intelligence Brief
Recent reports indicate that Xbox is implementing widespread layoffs affecting multiple studios under its ownership. The staff reductions include a significant portion of the coding team at Id Software and between 60 and 70 developers at Obsidian Entertainment. Coverage from IGN suggests the cuts at Obsidian may impact approximately one-quarter of the studio's total workforce.


GamesRadar+, IGN, and Video Games Chronicle emphasize the scale of these departures. The reporting highlights the specific reduction of technical staff at Id Software alongside the downsizing at Obsidian. Future developments remain subject to official confirmation from Microsoft regarding the total impact of these workforce reductions.


Current coverage does not yet specify the full extent of the layoffs across other subsidiaries. Whether these adjustments to staffing levels reflect a broader shift in development operations remains to be seen.

## Multi-Source Evidence Table
| Source Outlet | Headline | Verification URL |
|---|---|---|
| Engadget | Doom Developer Id Software Is Reportedly Losing Half Its Staff | [Source Link](https://news.google.com/rss/articles/CBMinAFBVV95cUxQazdHZjkzVEM4V2ZXWlRBNFpJLVhSSlJjOUVxMTZNeUQ5QlFtRmFXSGJRZklKYjh1SGpGeWZvZjdXWmgxQldkYVdnaW9nNFMyTjhxSVYweWoweFgxTjRJYVJzQzZYY2lSRllaUXBoakhXVDUyOTJMbHFlZkxucndDZURYcncyLVdLNlNhMXVCLTY0ZGNVU0pjV0FXX3A?oc=5) |
| Ars Technica | Bethesda, id Software reportedly hit hard by Microsoft layoffs | [Source Link](https://news.google.com/rss/articles/CBMiowFBVV95cUxNYjVCdTQ4WkZqV011eTY0UnBYaXpBTTJ6ZDVHb0hzbUZFQllZMm9vMTR5M29teHdwUUlxT1FPWnBfTF9kaWk4TXlNOFA0TWFKdHgycC16bzRyU01yaFI4OVRxR3pRUGJnckRzUDR2ZUN1ajZOUHFlbmI4Q2dzWHpjUFlBWGYyWTl2VUhIVktHY2ZyVmZMU0tOdW1abHRaTEpodVV3?oc=5) |
| Insider Gaming | Former Obsidian Dev Labels Layoffs ‘Microsoft Sacrificial Rituals’ | [Source Link](https://news.google.com/rss/articles/CBMijgFBVV95cUxNNUZZSDVIUV9oZ3JpcnM4eV81MG5RWHRlT1I4Z04xSzBtSzZPcmFQZEh6SWtVT3N2Z1pIenhRT0NTV29jcXFFSFdOci1RSDJDclNmMXU4NFUtSFplaGljUzUzekkxTU4yUjdPc09pRndhSmNqbTZXeUdaaElnWVBwcU5JZXNaVTk5X1NGckZn?oc=5) |
| TechPowerUp | Xbox Layoffs Decimate Id Software and Obsidian | [Source Link](https://news.google.com/rss/articles/CBMiiAFBVV95cUxOb1VwR0oydVZxUHFOZ2U3YngyeFc1SFNOeU5aTmNrbzJZdThhV0JKMmgtTWV2MXBBVDJjdU4xNXpzN3U5UndFWThNYTdId2lURFlUNWQ5SmMzYTVaZ3FUb1Q3YTdpM3FkbWJJVldXQ1VmS0xnTC15SFhOU1RfWm9ZbVcwd2VVakJ00gGOAUFVX3lxTE1aaDEtcTkzeUI4VWRUOVZScWt2M2Z4V3lhX0tSdFlLUW94ay1Qa0NYbDl5UnhreFFkUlVXNGpIb25rRUgzbkxEWGxyaDNBSnRJTzVFVmxpLVVBREVNVnYyQlV1UGdTc3VYNmpwODBmVU4zYmdMUG1OWHZaR1QxMkM2alMxenotRHR2SU1nZHc?oc=5) |
| Yahoo Finance | Obsidian Hit Hard By Xbox Layoffs, With 25% Of Devs Cut From Studio | [Source Link](https://news.google.com/rss/articles/CBMinwFBVV95cUxPV0hBeEhrUXk3S0x6dVUwenctUVJsbU1iSWVMT2VGUmhwQ1BsUmtLcURvV3ljOE5WM0NkX0plbGhqSzQ5UTZhRDJpSkpBYnlnbVVVeVRoLXUzWC11OEpPRGJQblBKNG04bWRFWVZnYkE1RGRVanl6UmJkMUM3R2QwdUIzWko4T2dVWEdZUy1FSnQ0NUhTcnl0TjdPUm1nYVU?oc=5) |
| Polygon.com | Fallout: New Vegas and Avowed dev hit hard in bloodiest week in Xbox history | [Source Link](https://news.google.com/rss/articles/CBMilgFBVV95cUxOR3BIRlRtUUVObnlsZkNYRVdOUjAyblFqdHJrWHV1eVYwbFZMcGdoWnJfbnZ4aXA2M3YwMjR2RGk3bkF5dE9WY012eTJrVnJweS1EdmtWamd3aENPUzFCUUFPeUVGSDRqWHVqUlEtVFVaY2ZCUng5QmVUSXB6b2piNWNfVUlwOFprRlJMRjRJLU4yYUhlNVE?oc=5) |
| GamingBolt | The Outer Worlds 2, Avowed Studio Hit by Layoffs, Affecting 25 Percent of Employees – Rumor | [Source Link](https://news.google.com/rss/articles/CBMirwFBVV95cUxOMmdhcG94eUFLckVKX2V2Mzd0X3hVaXhfaVVweFU1NmJza2FrQXUyOGhyd25RbnRHQ2szRWp0eHd0aXVLeEU1NzB4RURMV2J6NWx2eDVZLVI5ZEhCSE9zU3l0dHBjeHBhajBGWm1jdWYwdGY2OGIzWFY0aU1NYVMtc1R4MzZCMDg0UHNHbWJ5dDJvVnhFcVJUXzBXRk1pd0lhMzktRlRiejBOTnFaWUdN?oc=5) |
| GameDev.net | Report: Multiple Xbox game studio heads negotiating with Xbox to avoid closure | [Source Link](https://news.google.com/rss/articles/CBMiREFVX3lxTE05RXo3OFdNRjRVdUFBQlhCMXFla212Nk5FYXozYW5VWjk3OUdxUUpyYlRRV01ZbTVBZnpXRXJyTWVaY3lV?oc=5) |
| GamesRadar+ | Obsidian was also hit by "the Microsoft sacrificial rituals," says laid-off RPG veteran who previously worked on Dragon Age and Mass Effect | [Source Link](https://news.google.com/rss/articles/CBMiiwJBVV95cUxQRTVrdi00b2ZMc0o0RkxCMEtWWXp2ejktZ1JyOThaY1Qyb1BncWNQd0o4bU9lUERhbTItX2d2MFZoNHJCUTRicFppQnZYS2RySzZVcGo0c1dRQmdsYUgzdVQyeUVlb3NrNDlCSUpmWERRVERoTXI0cEVWQl9yd0VGcERBem1nNFdxaXhWMG5kUnZsRTFXVUNZNGFhU2pYeGxiM3htU2t3dFRncFVnZXhzQTVQR3o5REhfeFJEQjlwZ1FNcXZqUEtXSXRpN1hyVGJwT0F1TEstbXBkRWZmRFljTTZyY2xfR0NtOHlJZXJiWGdZa21WYURYWTFVZmloT0IzcnowR2txSmd3b0U?oc=5) |
| IGN | Obsidian Reportedly Set to Lose a Quarter of Its Staff Amid Xbox Layoffs | [Source Link](https://news.google.com/rss/articles/CBMi9wFBVV95cUxNZVIxdy1acWJoUmxmazJHcWdONi13YU9nZ3FoZ2FFa2lnMFY3bWpJeVBMYjJ1azJONWpEMHZCbWNFV1dTcGlVZ2FEWGxDSmV3emRYeU8yeVp4NWlQcmlEel9JUFhLcXlRTHl5OEZXTnlyMFRIZ1p6ME9JamluVVpUTVFlaFdpZ0dTSzNmbWhHS01nSVA4MGNsNko0Rm9fQ3VTZmVFYVM4aDR5T0xGVFVvLUo3OHhmMGZpVjdlNWNPZkJhTGx5Ry1obVlRVnNVTldqcHp1V1pUdmQwLWsyTXFpNER4d1I0bFNQNWJxWkF2MFlydFFDLXZ3?oc=5) |
| Video Games Chronicle | Xbox layoffs reportedly gut Id Software’s coding team and cut 60-70 developers from Obsidian | [Source Link](https://news.google.com/rss/articles/CBMizgFBVV95cUxOOUM0VVREcWlTTXpyb3N5NVV5RDJYbG0zRW9RTnUzSXdfY0lOV3hiNm1hZlZHNXZXTFpyeE5lWkhDWUZpWUdNaFNheHh4dkNxQW1lOEZZMW5WX0pvaFRLdDZRbDdGcDBlRWJLYmtBWTJ3bzZDaEJKSDFDWTIzVFFPRkFmWlJKV21kZVh0ZzVjWnRIN2Y5VUNGYjY2dzJDU1BPUFRpS1lEbWhTbU5ibmJLZkVQZXdHLVVHS0pLUDlOUjJIVGNtOGRmWW1HNmZHdw?oc=5) |

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*Canonical Source: https://pulse.byoviral.com/trend/2026-07-07/xbox-layoffs-reportedly-gut-id-software-s-coding-team-and-cut-60-70-developers*