ZeniMax Online Studios hit by second wave of layoffs

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.

A report by Kotaku described the latest cuts as brutal. Sources told the outlet that the scale raises doubts about how The Elder Scrolls Online can continue to function.

Community manager Jessica Folsom posted a statement on the game's forum. It reaffirmed commitment to the title and said the team remains focused on the launch of Season One.

The statement added that the roadmap for updates beyond Season One will be shifting. An internal email justified the cuts as a move to improve long-term growth, with emphasis shifting to major franchises including The Elder Scrolls, Fallout, Doom, Quake, and Wolfenstein.

This marks the second major round of layoffs in under a year. The previous cuts, which affected a significant portion of the development team and led to the cancellation of Project Blackbird, were described as inhumane by one impacted developer.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Microsoft has laid off around half the staff at id Software as part of broader Xbox division cuts announced this week. Bethesda Softworks was also hit particularly hard by the reductions. The moves come amid plans to focus on major franchises.

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Obsidian Entertainment is cutting 60 to 70 positions, roughly a quarter of its workforce, as part of broader Xbox restructuring announced earlier this week.

Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

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Union members at Microsoft Xbox held a press conference on June 29 to oppose expected mass layoffs. They argued the company has the resources to avoid cuts and called for stronger protections across all studios.

Electronic Arts has cut an unspecified number of jobs in a third round of layoffs this year. The move comes as the company prepares for a $55 billion leveraged buyout by Saudi Arabia's Public Investment Fund.

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Xbox's new chief executive Asha Sharma plans to speed up development of major franchises such as Halo and Fallout. Resources will be shifted from lower-performing areas while overall budgets stay flat. Microsoft leaders have approved the changes for the coming fiscal year.

 

 

 

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