Xbox cuts “not the end” for The Elder Scrolls Online, insists ZeniMax, despite a drastic reduction in size

Following Xbox’s sweeping restructuring announced by CEO Asha Sharma, The Elder Scrolls Online developer ZeniMax Online Studios has been significantly impacted, with 379 employees laid off across its Maryland offices. This marks the second major round of cuts affecting the studio in less than a year, reigniting community concerns that the long-running MMO could be entering “maintenance mode” with minimal new content development.

These fears were previously triggered earlier in 2026 when ZeniMax shifted from developing major expansions to releasing smaller seasonal updates, though the studio had insisted this change was unrelated to the earlier layoffs. With the new reductions, players have expressed renewed anxiety about the game’s future and whether meaningful development can continue.

However, ZeniMax Online has moved to reassure the community through statements from key team members. Community Manager ZOS_Kevin told fans that the team is planning a “revised roadmap” for the game while emphasizing that “the plan is still to deliver great content.” The studio has also claimed that despite the layoffs, it now maintains a staff size equivalent to when it was producing well-received DLC content, suggesting that substantive development can proceed.

As part of the broader Xbox restructuring, Microsoft is cutting 1,600 staff immediately with another 1,600 layoffs planned over the next 12 months. While ZeniMax’s reassurances aim to temper community concerns, the dramatic reduction in studio size combined with the shift away from major expansions has left some players skeptical about The Elder Scrolls Online’s long-term trajectory.

Xbox cuts “not the end” for The Elder Scrolls Online, insists ZeniMax, despite a drastic reduction in size

Sources