Xbox layoffs oust ZeniMax Online Studios leaders, impact Bethesda games

Microsoft announced a restructuring of its Xbox division that will cut up to 3,200 jobs worldwide. In Maryland, 379 positions were eliminated at ZeniMax, including more than 200 at ZeniMax Online Studios, the team behind The Elder Scrolls Online. The cuts forced the departure of studio head Joe Burba and senior staff such as Executive Producer Susan Kath, Studio Game Director Rich Lambert and Production Director Ala Diaz. A new leadership team—Josh Henderson and Nick Giacomini—will assume control of the studio.

The reductions have raised concerns for ongoing Bethesda projects. Bethesda confirmed that The Elder Scrolls VI remains its primary development focus and that Fallout 5 is now in pre‑production, with remasters of Fallout 3 and New Vegas also planned. The company emphasized that neither title is being cancelled despite the layoffs.

Employees at multiple Xbox studios have organized protests under the “Save Our Devs” banner, criticizing the limited communication and the scale of the cuts. Unions have demanded better severance, extended health coverage and priority re‑hiring for affected staff.