In a major restructuring move, Xbox announced on Monday that it would lay off 1,600 employees, part of a larger plan to cut 3,200 jobs by the end of its fiscal year. This decision is part of a broader divestment strategy affecting several studios, including a significant impact on ZeniMax Media and its subsidiary, Bethesda Softworks.
Impact on ZeniMax Online Studios
Reports indicate that ZeniMax Online Studios, the developer behind *The Elder Scrolls Online*, has been severely affected, with estimates suggesting that up to half of its team may be let go. Kotaku described the studio as being “seemingly gutted,” raising concerns about the future of the game.
Future Plans for *The Elder Scrolls Online*
The community manager for *The Elder Scrolls Online* took to the game’s forums to communicate that the future direction of the title will be “shifting” after the upcoming launch of Season One on July 8. The team plans to take a step back to evaluate their work and establish a clearer timeline for future updates.
Shifts in Bethesda’s Strategy
As part of the layoffs, Bethesda is set to change its operational approach. In an internal email, Bethesda head Jill Braff outlined a new focus on its strongest franchises, which include *Doom*, *The Elder Scrolls*, *Fallout*, *Quake*, and *Wolfenstein*. This shift aims to align talent and resources more fluidly across the organization, moving away from the previous model that centered on independent studio roadmaps.
What’s Next for Bethesda?
While the future of *Starfield* remains uncertain—having launched to mixed reviews and not being highlighted as a priority—Xbox is looking for more content from *The Elder Scrolls* and *Fallout*. *The Elder Scrolls 6* continues to be in development, though details remain scarce. Xbox chief content officer Matt Booty confirmed that the game is progressing well, with a promise of more information to come at the right time.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
