ZeniMax Online Studios Assures Fans It's Back to the Size It Was When Making Beloved ESO DLCs After Xbox Layoffs

The developer behind The Elder Scrolls Online, ZeniMax Online Studios, has moved to reassure worried fans that it remains fully committed to the game despite significant layoffs at Xbox. Last week, Xbox CEO Asha Sharma began a major restructuring of Microsoft's gaming division, cutting 1,600 staff initially, with another 1,600 layoffs planned over the next year. Bethesda was heavily affected, with a Maryland WARN Act notice revealing 213 layoffs from ZOS's Cockeysville office and 166 from ZeniMax Media Inc. in Rockville, totaling 379 employees. While the exact impact on specific projects is unclear due to blended teams, the numbers are sobering.

In an email to staff last week, Bethesda head Jill Braff acknowledged the layoffs, stating they "reflect the realities of our industry and business" and that the company must "change course" to ensure future success. She emphasized a shift from a studio-focused planning model to one centered on Bethesda's strongest franchises and content roadmaps.

ESO, which launched in April 2014, was undoubtedly affected, with staff confirming adjustments to its content roadmap. However, according to Massively OP, developers have now told fans that the team size has returned to the level it was when the well-received Wrothgar (2015) and Summerset (2018) DLCs were created. This news was shared by Baratron, an admin of the UESP Discord and prominent ESO player, who attended the ESO Tavern event in Germany. He reported that associate design director Jason Barnes and associate community management director Jessica Folsom stated the layoffs do not signal the end of ESO or a shift to maintenance mode.

ESO's Kevin Gbolie also posted on the forum, saying, "The plan is still to deliver great content, and we will hopefully have an update soon." He thanked fans for their support and apologized for delays in communication due to his attendance at the Tavern.

Last week, a source told IGN that ZOS is supporting ESO's new season model while seeking closer collaboration with Bethesda Game Studios to support the Elder Scrolls franchise as a whole, likely including The Elder Scrolls 6. These comments echo those of Doom developer id Software, which also faced heavy layoffs (96 staff in Richardson, Texas, plus 40 remote roles). id Software stated it is now at the staffing level it had when creating the acclaimed 2016 Doom reboot and remains capable of making "great games."

While both ZOS and id Software are sending positive messages, it's worth noting that over 1,000 Xbox employees are still set to lose their jobs in the coming months, causing ongoing anxiety and uncertainty among remaining staff.

For more on how the Xbox layoffs have impacted Bethesda, see our report on the fate of titles like The Elder Scrolls 6 and Fallout 5.