Microsoft has reportedly laid off most, if not all, developers working on its influential id Tech engine at id Software. This move is part of broader Xbox layoffs impacting approximately 3,200 employees through FY27, with around 1,600 roles eliminated immediately.

The id Tech engine has powered numerous first-person shooter titles and other game engines, ranking fourth in a recent assessment of the most important game engines ever. The precise number of affected id Tech developers is unclear, but reports indicate a significant portion of the team responsible for the engine's development has been let go.

This decision arrives as part of a larger strategic restructuring within Xbox, aimed at consolidating resources and streamlining operations. The future trajectory of the id Tech engine and its continued development remain uncertain following this significant workforce reduction within a historically important game technology division.