The Elder Scrolls Online reportedly loses half its development team following Xbox layoffs

Published: 17:09, 07 July 2026
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The Elder Scrolls Online reportedly loses half its development team following Xbox layoffs
Microsoft's Xbox restructuring resulted in significant layoffs at ZeniMax Online Studio

Key Points from the Article

  • The layoffs were part of a broader Xbox restructuring that impacted approximately 3,200 employees across Microsoft's gaming division
  • Bethesda confirmed continued support for The Elder Scrolls Online despite the cuts, though the roadmap will be adjusted and content may release slower with the reduced team
  • The Elder Scrolls Online remains healthy and is one of Bethesda's most successful live-service games
Microsoft's Xbox restructuring resulted in significant layoffs at ZeniMax Online Studio

Reports claim The Elder Scrolls Online has lost a significant portion of its development team after Microsoft's Xbox layoffs, raising concerns about future updates.

Microsoft’s recent Xbox restructuring reportedly affected The Elder Scrolls Online massively. The Fallout publisher recently reported that ZeniMax Online Studios lost half of its team due to layoffs. 

Bethesda or Microsoft haven’t confirmed how many people were let go. However, several developers have publicly spoken out about their departure from ZeniMax Online Studios.Former game director Rich Lambert and Senior Creator Engagement Manager Gina Bruno both confirmed they were impacted by Microsoft’s cuts. 

There have also been multiple reports suggesting that many employees let go were veteran developers with years of experience on the MMORPG. Some claims on social media even stated that “half the team” was laid off from ZeniMax Online Studios. 

Those numbers have not been confirmed and some developers have stated that number was just referring to content, dungeon, and event teams.Microsoft’s Xbox wide restructuring layoffs impacted about 3,200 employees throughout its gaming division. 

Bethesda recently stated ZeniMax Online Studios will continue supporting The Elder Scrolls Online despite layoffs.“We are committed to supporting Elder Scrolls Online and our community,” community manager Jessica Folsom tweeted. 

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Already-in-development content including ESO Season 1 will continue releasing as scheduled, and there are no plans to shut down the MMORPG
Already-in-development content including ESO Season 1 will continue releasing as scheduled, and there are no plans to shut down the MMORPG

“You can expect changes to our previously communicated roadmap as we look forward.”Content that’s already in development for The Elder Scrolls Online will continue releasing as scheduled. This includes ESO Season 1, the first major update of 2023.There’s been no indication that Bethesda plans to shut down The Elder Scrolls Online anytime soon. 

The MMORPG is healthy and continues to be one of Bethesda’s most successful live-service games.Players should not expect a sudden halt in development simply due to layoffs. However, with a reduced team, content may release slower, some promised features may be delayed, or the seasonal roadmap may change while ZeniMax Online Studios regroups.


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