Recent layoffs at Xbox have severely impacted ZeniMax Online Studios, with reports indicating that the developer behind The Elder Scrolls Online lost approximately half of its workforce. Andrew Young, a former content designer at ZeniMax Online Studios who worked on ESO from 2012 to 2042, shared his profound anger and sadness over the situation in a series of posts on X.
"I’m just so angry today," Young wrote. "People will never know the blood, sweat, and tears that went into making ESO or how we basically funded other failing projects while never getting enough resources to really keep up with our release cadence. The team deserved much better."
Despite its challenging launch in 2014, The Elder Scrolls Online saw a turnaround after its shift to the Tamriel Unlimited model a year later. However, the studio faced significant upheaval in 2025. Game director Matt Firor, who also served as president of ZeniMax Online Studios, departed following Microsoft's substantial layoffs that year, which also led to the cancellation of a new ZeniMax Online MMO codenamed Project Blackbird.
The recent, deeper cuts at the studio have raised concerns about its future. While TESO community manager Jessica Folsom affirmed the team's commitment to the game and stated that previously announced roadmaps for the new seasonal structure would be altered, the long-term implications remain unclear. Young expressed his deep concern, drawing a parallel to Amazon's New World, an MMO that was eventually discontinued despite moderate success.
"I’ve been gone for a while, but talking to people today and realizing there’s really no one left and no changing it now makes my heart ache," Young concluded. "For the people, our game, who we were as a team and a studio. This is a serious loss, and I don’t think people know how much."