I do agree with this though. Years ago, id could have been called a lightweight developer, but even now their staff is still quite large. id Tech 5 requires a LOT of man power to get anything done, so when Rage was at the height of it's development, they needed every artist they could get their hands on to get it done.
Of course, once the game was out the door there were huge layoffs, but such is to be expected from a grinding production like that. Only the real assets stay beyond that point.
To get this context a bit correct.
You don't measure studio level by number of people employed - must of those were stampers(contract/part-time) carmack used to call them.
Id Software is the masterweight - those important programming peolpe are still there. And you can see crap developers like Zynga - i wouldn't call them heavyweight becuase they have 3000 employees.
They laid off the stampers who were like modder to paint the world - they were junor developers never worked on IDTech5 before, then you have contract
This is normal business - they dont house all of those people they don't need.
And if you watched id software trivia and stuff on the web - you'd know that they PURPOSELLY stood low-profile to save money. And they don't need those people when engine is in development anyways.
Also remember the media spin - a stupid journalist would report "LAY OFFS" while seeing or hearing about how people leave the company but in reality it's was all planned at the end of the development cycle. Im not saying it was this - im saying it could be.