Xbox Layoffs Impact The Elder Scrolls Online Team, Leading to Changes in Game Roadmaps

The Elder Scrolls Online has faced significant challenges following recent layoffs across Xbox.

Insider sources have revealed that the cuts have hit Zenimax Online Studios, the team behind The Elder Scrolls Online, particularly hard. Shortly after the news broke, employees received invitations for group meetings with HR, where many were informed of their layoffs alongside their peers.

Over 20 individuals have already shared their experiences of being laid off from Zenimax on LinkedIn, with additional reports surfacing on other social media platforms. Many of those affected had been with the company for a long time, some for over a decade. While the exact number of layoffs impacting ESO remains unclear, several sources within Zenimax have indicated that it could be as high as half of the development team.

In a post on the ESO forums, community manager Jessica Folsom expressed the team’s desire to “reaffirm our commitment to The Elder Scrolls Online.” However, she noted that “the roadmaps we previously shared will be shifting.”

The team plans to take time to assess their current projects and establish a revised schedule. While they would like to provide specific details soon, they believe that stepping back to clarify their plans will allow them to return with a more defined timeline.

Both those affected by the layoffs and remaining staff have voiced concerns about how The Elder Scrolls Online will continue to operate with a reduced workforce. The game has been live since 2014 after a seven-year development cycle. By 2024, it had generated $2 billion in revenue, attracted 24 million players, and was reportedly earning around $15 million monthly. The game has seen eight major expansions, with the latest, Gold Road, launching in June 2024, and has transitioned to a seasonal model, with Season 2 set to kick off in just two days.

The Elder Scrolls Online team was also significantly impacted by layoffs last year, which led to the cancellation of the internal “Project Blackbird.” In recent years, the developers have formed two unions: one for QA and another for the broader team, both of which have joined their colleagues in advocating for negotiations regarding layoff terms for those affected.

Update 7/6/2026, 12:30pm ET: An email was sent to employees at Bethesda and Zenimax, including those on the ESO team, stating that the restructuring aims to enhance long-term growth. Moving forward, Bethesda intends to concentrate on its major franchises: Fallout, The Elder Scrolls, Wolfenstein, Doom, and Quake. Employees were assured that existing commitments, such as the upcoming ESO Season 1 update launching soon, along with the forthcoming Doom DLC and QuakeCon this year, will proceed as planned, though no details were provided regarding future updates or developments.