Xbox Lays Off Elder Scrolls Studio Head Who Took Over After Last Layoffs

The recent wave of 1,600 job cuts at Xbox has begun to ripple through its studios, with the most striking blow coming to ZeniMax Online Studios, the creators of The Elder Scrolls Online. Leadership positions—most notably studio chief Jo Burba—have been targeted, marking a significant shift for the team after only a few months under his direction.

Burba, who stepped into the helm last July following the previous round of mass layoffs, will be leaving after a 14‑year tenure, underscoring the depth of the restructuring.

The announcement also names executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz among those being let go. They have been instructed to stay on for a transitional period as new leaders take the reins.

In a brief note to staff, Burba expressed confidence in Josh and Nick, the successors poised to steer the studio toward continued growth.

A WARN Act filing in Maryland lists 379 layoffs across Microsoft and its subsidiaries, including Bethesda Game Studios, with cuts affecting senior roles such as Studio Operations Director, Studio Art Manager, and Vice President and Controller.

The recent reductions have sparked concerns among team members that the pace and quality of game development could be adversely affected. “We intend to carefully assess the tasks ahead and then lock in a revised timetable,” ESO’s community manager said as the Xbox layoffs unfolded. The studio later clarified that its development roster remains the same size it was when it released the well‑received Wrothgar and Summerset expansions.

Senior encounter designer Morgan Goin expressed a more pessimistic outlook. “We won’t be able to deliver the volume of content at the speed we were— or anything close to that,” she told the BBC. She added that the cuts had taken her by surprise, and the process is still ongoing for the year. An additional 1,600 employees across Xbox are slated for layoffs by July 2027.

Burba assumed leadership of ZeniMax Online Studios just a year ago, after the studio endured another wave of deep cuts. Much of the reduction stemmed from Microsoft shelving a highly anticipated sci‑fi shooter MMO, Project Blackbird. “Game development is always a painful business,” Matt Firor, who left as studio head following the cancellation, told MinnMax earlier this year.

Firon reflected, “Regardless of circumstances, you could be at the best studio in the world, yet decisions still affect people. I didn’t agree with what happened, but I understood the financial reasoning.” He added, “We are a number on a ledger, and if that number is large, it becomes a target for scrutiny, so to speak, and that number has always been substantial.”