Even The Elder Scrolls 6 is affected by Xbox layoffs, say Bethesda employees, as “key” people are let go and morale bottoms out

Microsoft’s massive wave of Xbox layoffs, which affected 3,200 positions across the company, has significantly impacted The Elder Scrolls 6 at Bethesda Game Studios. According to multiple anonymous staff members, more than 50 key employees across programming, art, and other disciplines have been let go from the studio.

Bethesda developers have expressed serious concerns about the effect on the long-awaited sequel to Skyrim. Staff told media outlets the layoffs will have a “substantial and cascading effect” on the project, with fears that the already-delayed game will face further postponement. One developer noted that the team “was already running a tight ship,” suggesting resources were already stretched before these cuts.

Beyond potential delays, Bethesda employees worry about increased development crunch and the loss of senior, experienced talent—described as “generational talent”—who may be replaced by contractors. The layoffs have reportedly “shattered” team morale at the studio. The Elder Scrolls 6 was announced in 2018 and was previously reported to be at least two years from completion. Other major Xbox studios, including id Software and ZeniMax Online Studios, have also experienced significant workforce reductions as part of Microsoft’s ongoing restructuring.

Sources