Another Elder Scrolls Game at Risk Following Major Xbox Studio Layoffs

16 Jul at 13:38 Comment Views: 16

Earlier this month, Xbox unveiled a sweeping restructuring strategy, marking the most profound organizational overhaul in the company’s history with plans to reduce its workforce by more than 3,200 positions this fiscal year. As first highlighted by Game File, ZeniMax Online Studios—the developers behind the long-running The Elder Scrolls Online (ESO)—has been significantly affected, bearing the brunt of over 200 of these job losses.

The reductions have reached the highest echelons of the studio, impacting critical leadership roles including the studio head, various directors across operations, game design, and audio departments, as well as the art manager and the vice president and controller. A detailed breakdown of the affected roles can be found here.

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Within the Elder Scrolls Online team specifically, several prominent figures are departing, most notably studio head Joe Burba—who assumed the position in mid-2025—alongside executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz. These outgoing leaders informed staff that the studio will shift to a newly promoted internal leadership team over the coming months. Moving forward, the studio will be jointly led by Josh Henderson, formerly head of business operations, and Nick Giacomini, who has served as ESO’s game director since August 2025.

Despite the instability, The Elder Scrolls Online remains a titan in the MMO space, and industry analysts suggest these cuts do not necessarily signal the end of the project. The title maintains a robust development roadmap stretching through the end of the year. History shows that established MMOs—such as EverQuest, The Lord of the Rings Online, and EVE Online—have successfully navigated similar leadership transitions and workforce contractions. Community manager Kevin Gbolie has reassured the player base, stating that the commitment to high-quality content remains intact. However, it is sobering to note that following a round of layoffs in 2025, ZeniMax Online’s total headcount has diminished by roughly 40% compared to 2024 figures.

Reports also indicate that the impact extends beyond ZeniMax Online Studios; ZeniMax Media Inc., the parent publisher overseeing Bethesda Game Studios and the Fallout and Elder Scrolls franchises, has also incurred a substantial wave of staff reductions.

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