What we know so far is just that id is "cutting a "significant number of staff":

https://bsky.app/profile/jasonschreier.bsky.social/post/3mpy...

https://www.reddit.com/r/Doom/comments/1up5pta/95_reportedly...

And I'm not sure I share your optimism that the industry will be better. It might not be worse, because it's possible that Microsoft is just so dysfunctional that id would never be allowed to produce another good game anyway. But the people losing their jobs here might be financially better off just leaving the game industry entirely. In particular, if the engine devs were totally cut, it's not clear to me that there's room for a studio to differentiate itself with a custom engine in the modern day.