ZeniMax Online Studios, the developer behind The Elder Scrolls Online (ESO), has undergone substantial layoffs, impacting more than 200 employees. The cuts include several senior leadership positions, such as the studio head, directors of operations, game, and audio, the art manager, and vice president and controller.
Joe Burba, who assumed the role of studio head in July 2025, along with executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz, are among the most notable departures. The studio plans to transition to a new leadership team composed of internal promotions over the coming months. Josh Henderson, formerly head of business operations, and Nick Giacomini, ESO's game director since August 2025, will co-lead the studio.
These layoffs are part of broader restructuring efforts at Xbox, which recently announced plans to lay off over 3,200 staff across the company this fiscal year. ZeniMax Media Inc., the parent publisher that includes Bethesda Game Studios, has also seen significant workforce reductions.
Despite the leadership changes and staff reductions, ZeniMax Online Studios has reassured players that the content roadmap for The Elder Scrolls Online remains on track. Community manager Kevin Gbolie stated that the team plans to "deliver great content" and anticipates providing an update soon. The history of MMOs shows that such transitions are not necessarily precursors to a game's end, with titles like EverQuest, The Lord of the Rings Online, and EVE Online having navigated similar circumstances.
However, this is not the first instance of layoffs at ZeniMax Online Studios. The studio experienced similar reductions in 2025, and its current workforce is reportedly around 40% smaller than it was in 2024. The future development of The Elder Scrolls Online and potentially other Elder Scrolls projects within ZeniMax Media remains a subject of close observation.