Romero Games Shuttered and Over 100 Staff Axed After Xbox Pulls Funding

Update #2 [Sat 5th Jul 2025, 12:15am]: The establishment has shut its doors in Galway, with over 100 employees left without jobs after Xbox withdrew support for the latest game from Romero Games.

This information comes from Irish outlet The Journal, aligning with earlier reports on the matter.

Although specifics remain unclear, it is thought that the Microsoft-owned Bethesda was contracted to distribute this new first-person shooter developed by the iconic DOOM creator John Romero and his team.

Nevertheless, it retracted its financial backing this week as part of a broader cost-reduction initiative, which resulted in multiple projects being cancelled, one studio closing, and many individuals losing their jobs.

There exists a slight glimmer of optimism that Romero Games might secure new funding and restart operations in the future, but for the moment, it has ceased its activities.

Update #1 [Thu 3rd Jul 2025, 6pm]: Based on the CVs of affected developers at Romero Games, the entire studio has been terminated in the wake of this week’s Xbox updates.

Numerous employees across various fields – from art to programming – have shared insights about the situation, with several claiming the whole team has been dismissed.

One former staff member specifically stated it’s “devastating that the studio is shutting down due to publisher cutbacks”.

Original Story: An anticipated project from the renowned DOOM designer John Romero and his crew has been cancelled amidst the broader Xbox reductions that have shaken the industry this week.

The withdrawal of funding – which Insider Gaming indicates would have been managed by Microsoft subsidiary Bethesda, likely for PS5 and other platforms – has led to layoffs at the developer Romero Games.

In a statement, it commented:

“This certainly isn’t indicative of our team’s efforts, performance, or the caliber of the project itself. We met every milestone punctually, consistently earned high accolades, and successfully surpassed all our internal checks. We are extremely proud of the work being accomplished, and of the skilled team behind it. The finest we’ve collaborated with.”

The studio is currently scrambling to determine its next steps. It also remarked that “several other undisclosed initiatives at various studios” have also felt the impact.

It further stated:

“This decision was strategic, taken at a high level within the publisher, far beyond our insight or influence. We sincerely wish there had been something, anything, we could have done to avert this outcome.”

It appears layoffs have already affected Romero Games as a result of the cancellation, with artist Cristoph Redl among those asserting he’s lost his position.

This week, Microsoft has dismissed more than 9,000 employees globally, with the Xbox division particularly impacted.

Amid the turmoil, the company has cancelled significant first-party titles such as Everwild and Perfect Dark, both of which likely would have launched on the PS5.

In the interim, division lead Phil Spencer remains in place, despite speculation about his retirement. It’s reassuring to know that at least one person at Xbox possesses job security, right?