ZeniMax assures fans Elder Scrolls Online will continue after layoffs

Developers at ZeniMax Online Studios told fans that The Elder Scrolls Online is not entering maintenance mode despite recent layoffs at Xbox. The team has returned to the size it held during the release of past expansions Wrothgar and Summerset.

At the ESO Tavern event in Germany over the weekend, player and wiki admin Baratron spoke with Associate Design Director Jason Barnes and Associate Director of Community Management Jessica Folsom. They confirmed the studio's current staffing matches levels from the acclaimed DLC periods.

Baratron posted on Discord that the news offers some reassurance. "This is not necessarily the end of new content or the game going into maintenance mode," he wrote, adding the overall mood was somber but not despairing.

Game director Nick Giacomini and executive producer Susan Kath were absent as they prepare an updated roadmap. Community manager Kevin Gbolie posted on the official forums that the plan remains to deliver strong content with an update expected soon.

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Photorealistic illustration of Bethesda Game Studios announcing Elder Scrolls 6 and Fallout project updates in a conference room setting.
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Bethesda outlines Elder Scrolls 6 progress and Fallout plans

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Bethesda Game Studios released detailed updates on July 17 confirming ongoing work on The Elder Scrolls 6 and multiple Fallout projects. The studio also pledged continued support for Starfield amid recent restructuring at Xbox.

ZeniMax Online Studios has been hit by another round of layoffs, with reports indicating up to half the team may have been affected. The cuts come less than a year after previous reductions at the studio.

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Bethesda has stated that recent staff reductions at its studios will not alter the development timeline for The Elder Scrolls 6. The company responded to questions raised after earlier reports suggested potential delays. This comes amid broader changes at Xbox-owned teams.

At Final Fantasy XIV Fan Fest 2026 in Anaheim, following the initial reveal of a Nintendo Switch 2 port and Evercold teaser, Game Director Naoki Yoshida detailed sweeping gameplay modernizations for the sixth expansion, set for January 2027. Updates aim to streamline progression and combat, drawing excited fan responses amid some concerns.

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Xbox unions represented by the Communications Workers of America are pushing for formal negotiations on potential layoffs before any announcements occur. External vendor contracts have already been terminated ahead of the company's fiscal year end. Employees at several studios remain uncertain about their future.

Microsoft is preparing mass layoffs that could affect up to 5,500 employees, with roughly 1,000 positions potentially eliminated in the Xbox division.

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A post on Microsoft’s Xbox Player Voice Portal calling for an end to studio closures has gained over 3,000 upvotes since last week.

 

 

 

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