By
Rebekah ValentinePublished July 6, 2026
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The Elder Scrolls Online appears to have been heavily impacted following today’s sweeping cuts across Xbox
on Zenimax Online Studios, developer of The Elder Scrolls Online, has been brutal. Shortly after the news of layoffs broke this morning, individuals began getting invites to group meetings with HR, where they were laid off alongside their colleagues
Over 20 individuals have already posted about being laid off from Zenimax on LinkedIn, with more across other social platforms. Many reported having long tenures with the company; several over ten years. While the total number impacted on ESO is unknown, multiple individuals within Zenimax have suggested to Kotaku that the total number impacted could be as much as half the development team
In a post on the ESO forums, community manager Jessica Folsom has said the team wants to “reaffirm our commitment to The Elder Scrolls Online.” However, “the roadmaps we previously shared will be shifting.”
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 a concrete details today, stepping back to get our plans straight will let us come back to you with a clear timeline
Multiple individuals from Zenimax, both those impacted by the layoff and those still employed, expressed to Kotaku a deep uncertainty as to how The Elder Scrolls Online would continue to function with so few people remaining. The game has been online since 2014 after a seven-year development period. As of 2024 it had generated $2 billion in revenue, had been played by 24 million people, and was allegedly bringing in around $15 million per month. It has seen eight major expansions, with its most recent, Solstice, having launched in June of 2025, and has since moved to a seasonal structure. Season 1 officially launches in two days.
TheElder Scrolls Online team was also heavily impacted by last year’s layoffs, which resulted in the cancelation of the internal “Project Blackbird.” In the last several years, the game’s developers have formed two unions: one for QA, and one for the rest of the team, both of which have joined their colleagues in CWA in demanding negotiation of layoff terms for impacted workers
Update 7/6/2026, 12:30pm ET:Kotaku understands that earlier today, an email was sent out to Bethesda and Zenimax employees, including those on the ESO team, saying the restructuring was for the purpose of improving long-term growth. Going forward, Bethesda plans to focus on its biggest franchises: Fallout, The Elder Scrolls, Wolfenstein, Doom, and Quake. Employees were also told that existing commitments, such as the upcoming ESO Season 1 update that launches in a few days, as well as the upcoming Doom DLC and QuakeCon this year, will continue as planned, though there was no information on future updates or iterations of these things.
Update 7/6/2026, 12:52pm ET: Updated to fix a typo that misidentified the update schedule
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