Xbox layoffs: jobs lost at Bethesda, more reported at id Software
Microsoft has announced a major restructuring of its Xbox division, with 3,200 job losses planned across the current fiscal year—1,600 laid off immediately on July 6 and another 1,600 to follow. Xbox CEO Asha Sharma characterized it as “the most significant restructure in Xbox history,” stating that the company’s gaming business “is not healthy” and needs to refocus on its strongest franchises.
The restructuring includes divesting four studios—Compulsion Games, Double Fine, Ninja Theory, and Undead Labs—either to new management or as independent entities. Beyond the studio departures, remaining subsidiaries under Xbox are experiencing significant cuts. ZeniMax Media and Bethesda Softworks have been particularly impacted, with reports indicating all studios under the ZeniMax umbrella—including id Software, MachineGames, and ZeniMax Online Studios—will undergo a “significant overhaul.”
The Elder Scrolls Online has been hit especially hard, with reports suggesting up to half its development team at ZeniMax Online Studios has been laid off. The studio posted that the game’s previously announced roadmap “will be shifting,” raising concerns about the long-running MMO’s future support. Bethesda leadership has instructed staff that the company must focus on its “strongest franchises”—including The Elder Scrolls, Fallout, and DOOM—as part of the reset.
The layoffs affect approximately 20% of Xbox’s total workforce and represent part of a broader Microsoft efficiency drive aimed at reaching 1 billion daily players for Xbox services.
Sources
- Xbox layoffs: jobs lost at Bethesda, more reported at id Software
- Xbox Layoffs Hit Id Software And ZeniMax As Focus Shifts To Bigger Franchises
- The Elder Scrolls Online Has Reportedly Lost ‘As Much as Half’ of Its Development Team as Its Roadmap Is Being Re-Evaluated
- ‘We Need to Change Course’ — Bethesda Boss Tells Staff the Company Must Focus on ‘Our Strongest Franchises’ as Xbox Layoffs Hit Hard
- Elder Scrolls Online’s Future Hangs in the Balance as Reports Claim ‘Half the Team’ Has Been Laid Off
- ZeniMax Impacted By Xbox Layoffs, Will Focus On “Biggest Franchises”
- Bethesda Will Reportedly Shift Focus Over To Its Biggest Franchises
- Elder Scrolls Online developer left reeling by Xbox layoffs—with teams gutted, senior talent gone, and roadmaps ‘shifting’ as a result
- Bethesda Game Studios and ZeniMax hit hard by Xbox layoffs, says union
- Xbox layoffs hit Bethesda: Elder Scrolls Online developer ‘gutted’
- Report: Bethesda Faces ‘Significant Overhaul’ At Xbox, Will Focus On Key Franchises
- Bethesda Reducing Workforce, Refocusing on Its Biggest Franchises Amid Xbox Layoffs
- ZeniMax’s pivot to big series amid Xbox cuts reportedly isn’t a death knell for Doom, Quake and Wolfenstein
- Report: Mass Xbox layoffs will impact Fallout and The Elder Scrolls devs Bethesda and ZeniMax “significantly” — they’ll focus on their “biggest franchises” like DOOM