Zenimax Online Studios, the developer behind The Elder Scrolls Online, has seen multiple senior leadership positions eliminated as part of extensive layoffs affecting Xbox and its subsidiaries. Over 200 employees at the studio were made redundant, according to a report by Game File.
Among the departing executives are Joe Burba, who was appointed studio head last July, Elder Scrolls Online executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz. These departures come as part of layoffs announced by Microsoft earlier this month. A Maryland WARN letter indicates that 379 employees across Zenimax Media Inc. and Zenimax Online Studios had their jobs cut.
Plans are in motion to transition to a new leadership team drawn from the remaining staff over the coming months. Josh Henderson, formerly head of business operations, will now lead Zenimax Online Studios, alongside newly appointed game director Nick Giacomini, who was promoted to the role last August.
This marks the second significant round of staffing cuts at Zenimax Online Studios in two years. A similar wave of layoffs occurred just over a year ago, following Microsoft's company-wide reduction of approximately 9,000 employees. That previous round resulted in the departure of studio head Matt Firor and the cancellation of an unannounced MMO codenamed Project Blackbird.
Despite these repeated reductions, Zenimax has stated that The Elder Scrolls Online will continue. Associate design director and associate director of community management have indicated that the team's current size is comparable to when the Wrothgar and Summerset expansions were released. Microsoft has justified these cuts as part of a broader strategy to restructure its studios and focus on core franchises.