id Software has issued a statement following layoffs at Xbox that saw roughly half the staff at the legendary first-person shooter studio lose their jobs.

On Wednesday, a WARN notice filed in Texas reported by Game Developer confirmed that 96 workers had been laid off in Richardson, Texas, home of id Software, with a further 40 remote roles cut. The cuts were part of new Xbox CEO Asha Sharma’s “reset” of Microsoft’s gaming business, which began with 1,600 staff losing their jobs on Monday. Another 1,600 will be let go during the rest of the current financial year. Four Xbox studios are already out the door, with another hot on their heels.

Some have expressed concern that id Software would be unable to lead development on any new games in its current state, and that it might be relegated to support studio status. But in a new statement issued to IGN, id Software said it was now at the staffing level it was back when it made the much-loved 2016 Doom reboot — and insisted it was still capable of making “great games.”

Here’s the statement in full, posted to id Software's X / Twitter page:

Thank you all for the support this week.

While our studio was impacted, those changes were spread across teams. We still have the crew we need to build the games and tech we're known for. The team today is about the same size we were when making Doom 2016. We have always had a flat studio where everyone is a maker, and we will remain true to that philosophy moving forward.

We are focused on supporting each other and the team members impacted. We're going to keep building the great games and tech that have defined us for the past 35 years, and we're looking forward to seeing you at QuakeCon this August.

id and Xbox are also pushed back on the suggestion that there’s essentially no-one left at the company working on id Tech, the game engine it and fellow Bethesda-owned studio MachineGames uses to build their games (MachineGames is rumored to be working on Wolfenstein 3). Xbox confirmed to IGN that "there are dozens of people working on id Tech across multiple locations," and that previous reports that there was only one person left in Texas are "inaccurate."

While id Software currently has no announced project, IGN understands that the studio is prototyping a number of potential projects, with the belief it is still capable of building its own games. According to GamesBeat, id was formulating new game ideas, such as a John Wick-style original IP, a new Perfect Dark game, and a multiplayer / co-op Doom game before the layoffs hit.

Bethesda studios will collaborate more closely from now on, however, and, generally at Xbox, there is a focus on bigger franchises such as Halo, Minecraft, Candy Crush, Fallout, and The Elder Scrolls. As revealed by IGN, in an email to Bethesda staff sent following Sharma's memo on Monday, Bethesda boss Jill Braff said the layoffs and change in strategy “reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation.”

"To be successful in the future, we need to change course,” Braff continued. “We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn't make a day like today any easier.”

But what does that actually mean beyond layoffs at the likes of id Software, ZeniMax Online Studios, and elsewhere at Bethesda? Without naming games, Braff said “to best position Bethesda for future growth, we are shifting from a planning model primarily centered on what's next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole.”

“From there, we’ll align the right talent, technology, and resources across the organization to deliver on those priorities,” Braff added.

id Software co-founders John Romero and John Carmack have both issued statements on the layoffs at the studio. John Romero took to social media to offer affected id Software staff his support, and to call on the studio’s recent legacy to be preserved. “Doom, Quake, and Wolfenstein are not easy names to carry on, especially in today’s industry,” he said. “The last few games showed real care, skill and respect for what those worlds mean to people.”

Carmack, however, expressed sadness but not “anger or outrage," questioning whether id Software's games had sold well enough to prevent the layoffs.

Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.