Microsoft plans to eliminate 3,200 positions across its Xbox studios by the end of the year, with id Software facing a reduction of 136 employees, over half of its workforce. The studio reassured staff that it still has the necessary team size to continue producing games and maintaining its proprietary engine, idTech. Despite the layoffs, id Software is not pressured to transition to Unreal Engine and intends to continue development on id Tech. The current workforce size is comparable to a decade ago, raising concerns about the studio's ability to meet the demands of modern game development.