Bethesda Softworks
has confirmed with Gamasutra that id Software has indeed let some people go. The details of how many aren't known, but there are indeed a few less people at the Dallas company.
Peter Hines, VP of marketing and PR for Bethesda, did say that id is still hiring so this could just be a round of contractors who aren't renewed and they're looking for a new batch of folks to fill in. I'm currently working in that capacity myself where my contract is on a six month basis and gets renewed at the company's digression.
They're going to need some folks though as they're currently working on
Doom 4.
Rage didn't do too bad and Jeremy liked it, but I've yet to play it myself. It's the only id game that I haven't been excited about.