Elder Scrolls Online Studio Leadership Affected by Xbox Layoffs, Express Confidence in Game’s Future

Teams at Xbox are still grappling with the significant fallout from this month’s 1,600 layoffs. Among those affected are key figures at ZeniMax Online Studios, the creators of The Elder Scrolls Online. Jo Burba, who stepped into the role of studio head last July following a previous wave of layoffs, is set to leave after 14 years with the company.

This information comes from an internal memo shared with staff on July 15. Other notable departures include executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz. They have informed the ZeniMax Online team that they will stay on for a few months to help facilitate the transition to new leadership.

In the memo, Burba expressed confidence in the future of the studio, stating, “We have tremendous confidence in Josh and Nick, the future of this studio, and the continued growth of ESO.” He emphasized that exciting developments are on the horizon as the team wraps up work on Update 51 and beyond, encouraging staff to maintain their passion and commitment to the community.

A WARN Act notice filed in Maryland indicated that 379 layoffs occurred across Microsoft and ZeniMax’s offices, including Bethesda Game Studios. The notice highlighted cuts to senior leadership roles such as Studio Operations Director, Studio Art Manager, and Vice President and Controller.

These layoffs have raised concerns among some team members about potential negative impacts on game development. The community manager for ESO stated that they would take time to assess their workload and establish a revised schedule. However, the studio later reassured that the development team remains as robust as when they launched the popular Wrothgar and Summerset expansions.

Senior encounter designer Morgan Goin expressed a more pessimistic view, stating, “We’re not going to be able to put out the amount of content at the speed that we were… or anything approaching that.” She mentioned feeling blindsided by the layoffs, which are expected to continue, with another 1,600 layoffs projected across Xbox by July 2027.

Burba’s tenure as head of ZeniMax Online Studios began just a year ago, following a previous round of significant cuts, which were largely attributed to Microsoft’s cancellation of a promising sci-fi shooter MMO known as Project Blackbird. Matt Firor, who stepped down as studio head due to the cancellation, reflected on the challenges of game development, noting, “Making games is always a heartbreaking business.” He acknowledged the harsh realities of financial decisions impacting people, stating, “We’re a number on a ledger, and if that number is large, it is ripe for analysis, shall we say, and that number was always large.”