Microsoft layoffs disrupt ZeniMax, Xbox and Bethesda operations

Microsoft’s recent restructuring has led to a major reduction of staff at ZeniMax Online Studios, the developer behind The Elder Scrolls Online (ESO). About half of the team working on ESO was laid off despite the game generating over $2 billion in total revenue and $15 million in monthly profit. The cuts forced the studio to shift its live‑service model from regular expansions to a seasonal roadmap through 2026, but the first season’s release coincided with the layoffs, prompting senior designer Morgan Goin to say, “We’re not going to be able to release the amount of content at the speed that we were…”.

The downsizing follows the cancellation of the Project Blackbird MMO, which led to the resignation of ZOS founder Matt Firor. In addition to the global cuts, unverified reports suggest Microsoft may have closed its Polish Xbox and Bethesda offices, with former staff members posting #OpenToWork on LinkedIn. No official comment from Microsoft has been provided, and the full impact on local Polish gamers remains uncertain.