The Elder Scrolls Online is set to undergo major changes following severe layoffs at Zenimax Online. A little over a week after Xbox announced the layoff of 3,200 people—1,600 of them with immediate effect—the consequences of the decision on its game studios are becoming clearer.
Documents obtained by the website Game File reveal that Zenimax Online, the developer behind The Elder Scrolls Online, has lost almost its entire leadership team.
Among the employees laid off are several key veterans of the studio:
The loss of this core leadership team has raised concerns that The Elder Scrolls Online will face significant difficulties maintaining the update pace required to remain relevant. Following the layoff announcements, some studio members have already warned that they will be forced to re-evaluate their future release schedule.
Internal communications accessed by Game File confirm that management of the studio will transition to new leadership:
Joe Burba confirmed that the outgoing leadership team will remain active for a few months to assist with the transition initiated by Xbox. Publicly, Burba expressed confidence in both the future success of the MMO and the leadership of Josh and Nick.
The exact scale of the staff reductions was revealed through mandatory filings that Microsoft had to submit to the Maryland Department of Labor:
This marks the second major wave of layoffs the studio has faced in recent years. In 2025, a previous round of cuts resulted in the departure of studio head Matt Firor, who decided he no longer had a place at the company after seeing his project, Project Blackbird, canceled.
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