Bethesda and ZeniMax Hit Hard by Xbox Layoffs, Union Reports

Xbox's recent widespread layoffs have significantly impacted Bethesda Game Studios and its parent company, ZeniMax Media, according to reports and statements from the Bethesda Game Workers Union. Microsoft CEO Asha Sharma indicated that reductions were occurring across "other units" and that investment was being shifted to higher priority projects, affecting divisions including Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios.

While specific details on studio-level cuts remain undisclosed, journalist Jason Schreier reported that ZeniMax Media, which oversees id Software, Bethesda Softworks, and ZeniMax Online Studios, would be "impacted significantly by the reorganization." However, Schreier clarified that Bethesda would not be reduced solely to its Fallout and The Elder Scrolls teams, and will continue work on franchises like Wolfenstein, Doom, and Quake.

Despite these assurances, studios contributing to these franchises are reportedly facing substantial staff reductions. Schreier noted that id Software, known for Doom, and ZeniMax Online Studios, responsible for The Elder Scrolls Online, are not closing but have undergone significant staff cuts. This aligns with the Bethesda Game Workers Union's statement, which described the layoffs as part of a "stressful annual routine" by Microsoft.

The union expressed dismay on Bluesky, stating, "Today we say goodbye to many of our friends and colleagues and to hundreds more across Xbox, including folks that have worked at Bethesda Games Studios for decades. When will this cycle of cuts in pursuit of ever-greater profits end?"

The Bethesda Game Workers Union, formed in 2024, represents a "wall to wall" organization within the company. Their statement highlighted that Microsoft's decision to lay off thousands, including many at Bethesda Game Studios, was deemed insufficient by leadership to rectify past issues, despite previous rounds of cuts affecting over 10,000 developers.

Further information has been sought from Bethesda and the Bethesda Game Workers Union.