While rumors had indicated that The Elder Scrolls Online developer ZeniMax Online Studios had been hit quite hard by Xbox’s recent layoffs, a new WARN (Work Adjustment and Retraining Notification) notice reveals that 213 employees were affected. This is a major reduction in the studio’s workforce since, according to a 2025 report by Bloomberg’s Jason Schreier, ZeniMax Online Studios had a staff of more than 300 employees. ZeniMax Media as a whole hasn’t been left unscathed. Layoffs at the company have affected 166 of its employees.
When it comes to ZeniMax Online Studios, however, assuming a prior headcount of just over 300, anywhere from 100 to 150 employees now remain. This would also explain why the studio confirmed that its previously planned content roadmap for MMORPG The Elder Scrolls Online was going to be “shifting”. Losing major parts of the development team has likely impacted the plans it had for the game following the launch of its first season this week.
“Looking beyond Season One, the roadmaps we previously shared will be shifting,” announced community manager Jessica Folsom earlier this week. “We want to take the time to evaluate the work in front of us and then lock down an updated schedule. While we’d love to share concrete details today, stepping back to get our plans straight will let us come back to you with a clear timeline.”
At the time, reports had indicated that former employees weren’t quite sure how ZeniMax Online Studios would continue the development of The Elder Scrolls Online due to its massively reduced workforce. Complicating matters is the fact that the MMORPG was shifting from its previous expansion-based content release strategy to a new seasonal cadence this year.
Following the layoffs, former content designer Andrew Young took to social media to express his disappointment at many of his former team members losing their jobs. Along with mentioning how fans of The Elder Scrolls Online will “never know” all the work that went into the game’s development, he also said that the employees “deserved much better.”
“I’m just so angry today. People will never know the blood, sweat, and tears that went into making ESO or how we basically funded other failing projects while never getting enough resources to really keep up with our release cadence. The team deserved much better.”
“I’ve been gone for a while, but talking to people today and realizing there’s really no one left and no changing it now makes my heart ache. For the people, our game, who we were as a team and a studio. This is a serious loss, and I don’t think people know how much.”
ZeniMax Online Studios is one of the many companies across Microsoft that have been affected by layoffs. Xbox CEO Asha Sharma announced the layoffs earlier this week, confirming that around 1,600 jobs would be affected. Another 1,600 job cuts are also planned before the end of the current fiscal year on June 30th, 2027. Xbox has also undergone major structural changes as part of the layoffs, with Helen Chiang being appointed as the division’s new COO.
