Microsoft's ZeniMax Online Studios cuts over 200 staff, jeopardizing Elder Scrolls Online

Microsoft's Xbox division announced massive layoffs affecting ZeniMax Online Studios, the developer of The Elder Scrolls Online (ESO). A WARN notice from Maryland confirms that 213 employees at ZeniMax Online and 166 at ZeniMax Media were let go, representing roughly 60‑71 % of the studio’s workforce.

The cuts include senior figures such as studio director Rich Lambert, lead dungeon director Mike Finnigan, senior writer Jeff Grubb, narrative director Bill Slavicsek and community manager Gina Bruno. The reductions raise doubts about forthcoming content, including the planned 2027 Skyrim expansion, cross‑play implementation and the regular release schedule.

Despite the turmoil, ZeniMax launched ESO’s Season One across PC, PS5 and Xbox Series X|S, introducing new questlines, systems and events. However, the studio’s ability to sustain future updates remains uncertain, with community managers acknowledging that roadmaps will be reassessed.

The layoffs are part of broader cost‑cutting measures at Microsoft’s Xbox unit, reflecting the company's focus on profitability across its flagship MMORPG portfolio, which also includes World of Warcraft under the same corporate umbrella.