The Elder Scrolls Online Team Seemingly Gutted By Xbox Layoffs

The Elder Scrolls Online is now confronting serious fallout as a result of this morning’s sweeping layoffs at Xbox.

Insiders who spoke with Kotaku revealed that Zenimax Online Studios—responsible for ESO—has felt the full force of the cuts. Within hours of the announcement, employees received invitations to group HR meetings, where they were dismissed alongside their colleagues.

More than 20 staff members have already shared their layoff news on LinkedIn, with additional posts flooding other social platforms. Many of those affected boast long tenures, with several having served Zenimax for over a decade. While the exact number of ESO employees impacted remains unclear, several insiders have indicated that the losses could amount to as much as half of the development team.

In a recent forum post, ESO community manager Jessica Folsom emphasized the team’s determination to “reaffirm our commitment to The Elder Scrolls Online.” She also warned that “the roadmaps we previously shared will be shifting.”

We’re taking a moment to assess our current workload before finalizing a revised timetable. Though we’re eager to disclose specifics now, a brief pause will allow us to deliver a definitive schedule.

Zenimax staff—both those laid off and those still on the payroll—conveyed to Kotaku a profound uncertainty about the future of The Elder Scrolls Online amid a dramatically reduced team. The MMO has been live since 2014, following a seven‑year development cycle, and by 2024 had amassed $2 billion in revenue, attracted 24 million players, and generated roughly $15 million monthly. After eight major expansions, the latest, Solstice, debuted in June 2025, the title has transitioned to a seasonal model, with Season 1 slated to launch in just two days.

The ESO squad suffered significant cuts last year, leading to the shelving of the internal initiative known as “Project Blackbird.” Over recent years, developers have organized into two unions—one representing QA staff and another covering the broader team—both of which have aligned with the Communications Workers of America to negotiate layoff conditions for affected employees.

Update – July 6, 2026, 12:30 p.m. ET: Kotaku reports that earlier today a company‑wide email was dispatched to Bethesda and Zenimax personnel, including ESO staff, announcing a restructuring aimed at bolstering long‑term growth. Moving forward, Bethesda will concentrate on its flagship franchises—Fallout, The Elder Scrolls, Wolfenstein, Doom, and Quake. Employees were assured that current commitments—such as the imminent ESO Season 1 release, the forthcoming Doom DLC, and this year’s QuakeCon—will proceed as scheduled, though no details were provided regarding future updates or iterations.

On July 6, 2026 at 12:52 p.m. Eastern Time, the development team released a quick patch to correct a typographical error that had misidentified the upcoming update schedule. This small but essential tweak ensures players receive accurate information about when new content will arrive, preventing confusion and preserving trust in the game’s release cadence.