ZeniMax Online Studios, the developer behind The Elder Scrolls Online, has been significantly impacted by recent layoffs initiated by Xbox. Senior content designer Katherine Souza reported on Bluesky that approximately half of the active developers working on content, events, and dungeons were affected. Souza has since clarified her statement, noting she cannot speak to the studio's overall numbers but confirmed a substantial portion of the content creation team was let go.
The layoffs have led to the departure of numerous senior employees with extensive institutional experience. Among those reportedly affected are senior QA tester Page Branson, senior user researcher Elisabeth Whyte, associate design director Mike Finnigan, senior software engineer Dustin Thurston, and senior community engagement manager Gina Bruno. Finnigan, who had been with ZeniMax Online Studios for nearly 15 years, stated he had a hand in every dungeon, arena, trial, and event zone. Bruno had been with ZeniMax for 19 years.
This comes after ZeniMax Online Studios experienced another blow in 2025 when Xbox canceled Project Blackbird, a game that had been in development for nearly a decade. Those layoffs were part of a larger wave of 9,000 job losses across the company. Despite these challenges, the development team for Elder Scrolls Online had been described as "rallied" in January by executive producer Susan Kath and game director Nick Giacomini, with a new seasonal structure and multiple refreshes in development.
However, the recent layoffs have introduced uncertainty regarding the game's future plans. In an update on the game's forums, the development team stated that roadmaps shared previously will be shifting. They intend to take time to evaluate upcoming work and finalize an updated schedule, with a promise to share concrete details and a clear timeline once plans are solidified. The team acknowledged a desire to share specifics immediately but emphasized the need for reassessment to ensure a coherent plan moving forward.
The situation leaves the future direction of The Elder Scrolls Online uncertain, particularly as the development team navigates these significant personnel changes and potential shifts in strategic priorities. The full extent of the impact on ongoing and future content remains to be seen.