Elder Scrolls Online Experiences Shake-Up with Departure of Key Team Members

Earlier this month, Xbox announced plans to lay off over 3,200 employees throughout this fiscal year, marking what it described as “the most significant restructure” in its history. Recently, it was revealed that more than 200 of these layoffs will occur at ZeniMax Online Studios, the team behind The Elder Scrolls Online (ESO).

Among those affected are several senior roles, including the studio head, directors from operations, game, and audio divisions, the art manager, and the vice president and controller. A complete list of impacted positions is available.

While specifics are still emerging, we have a clearer understanding of Xbox’s future direction.

For The Elder Scrolls Online, notable departures include studio head Joe Burba (who just took the role in July 2025), executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz. The team informed staff about a transition to a new leadership structure over the coming months, which will feature promotions from within. The studio will now be co-led by Josh Henderson, previously the head of business operations, and Nick Giacomini, who has served as the ESO game director since August 2025.

The Elder Scrolls Online remains one of the most popular MMOs today, so while these layoffs raise concerns, it’s premature to assume this signals the end. The game has a robust content roadmap planned through the end of the year, and MMOs have a history of weathering leadership changes and layoffs. Titles like EverQuest, The Lord of the Rings Online, and EVE Online have all navigated similar challenges. Community manager Kevin Gbolie reassured fans that “the plan is still to deliver great content, and we will hopefully have an update soon.” However, it’s important to note that ZeniMax Online also experienced layoffs in 2025, resulting in a workforce reduction of about 40% compared to 2024.

Additionally, it has been reported that ZeniMax Media Inc. (the parent company for Bethesda Game Studios, which includes the Fallout and main Elder Scrolls series) also faced significant cuts alongside the layoffs at ZeniMax Online Studios.