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CONFIRMEDANNOUNCEDZeniMax Media Inc. and its ZeniMax Online Studios are part of Xbox's recent mass-layoff round that will affect a total of 379 workers across ZeniMax, with 213 cuts at ZeniMax Online Studios and 166 at ZeniMax Media Inc.'s Rockville offices. The WARN notice lists specific senior roles being cut — including the studio head, studio operations director, and studio game director — and highlights that the quality assurance division will be heavily impacted with about 89 QA staff affected. The notice sets the layoffs to occur on September 4 and indicates many impacted employees are represented by the Communications Workers of America; some employees may remain briefly to finish projects while effects bargaining proceeds. These cuts are part of a wider Xbox reduction announced by Microsoft that totals 3,200 job cuts across the division and are framed by the company as a strategic
As part of a broader Xbox workforce reduction announced by Microsoft, a WARN notice filed with the Maryland Department of Labor states that 166 employees will be laid off at the offices of ZeniMax Media Inc. in Rockville, Montgomery County, effective September 4, 2026. The article also reports 213 layoffs at ZeniMax Online Studios (a separate ZeniMax entity), bringing substantial job losses across the company’s Maryland operations tied to Microsoft’s larger Xbox cuts. Microsoft said the Xbox division will cut 3,200 jobs in total, with 1,600 immediate and 1,600 more to follow before the end of the fiscal year, and the ZeniMax Media Inc. layoffs are part of that reset. The report cites prior layoffs at ZeniMax Online Studios, recent project cancellations and unionization activity as context for the cuts and notes uncertainty about remaining headcount at affected studios.
An internal purge tied to Microsoft's recent round of mass layoffs resulted in significant cuts across ZeniMax entities. PC Gamer reports that 379 employees in total were affected across ZeniMax operations in Maryland: 213 from ZeniMax Online Studios (including key Elder Scrolls Online leaders such as studio head Joseph Burba, executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz) and 166 from ZeniMax Media (including Bethesda Game Studios and publishing). The departing ESO leaders will remain for a transition period of several months while a new leadership team takes over. The article notes ZeniMax Online's headcount had already shrunk considerably since late 2024 (roughly 461) and that the studio has lost at least 40% of its workforce after rounds of layoffs in 2025 and 2026, raising concerns about institutional knowledge loss and the future of ESO.
Xbox announced a company-wide restructuring that will reduce its workforce by more than 3,200 positions this fiscal year, and ZeniMax entities were significantly affected. The report states ZeniMax Online Studios absorbed over 200 job losses, including senior leadership roles such as the studio head, directors across operations, game design and audio, an art manager, and the VP and controller. The article also notes ZeniMax Online’s headcount is about 40% lower than in 2024 following prior 2025 cuts, and indicates that ZeniMax Media Inc., the parent publisher overseeing Bethesda and major franchises, has undergone substantial staff reductions as part of the wider Xbox cuts. Despite departures, ESO’s development roadmap continues and internal leadership transitions have been announced.
As part of broader Xbox layoffs, ZeniMax Media Inc. had 166 employees laid off from its Rockville, MD office according to a Maryland WARN Act notice cited in the article. The article notes Bethesda overall was hit hard, and combined WARN notices show 213 layoffs at ZeniMax Online Studios in Cockeysville, MD and 166 at ZeniMax Media Inc. in Rockville for a total of 379 across those Bethesda sites. The piece places these cuts within Xbox's larger restructuring under CEO Asha Sharma, who cut 1,600 staff with another 1,600 planned, and includes statements from Bethesda leadership about refocusing on core franchises. ZeniMax/ESO staff have indicated the team size is now similar to when past DLCs were produced and that development will continue, though some planned content roadmaps may be adjusted.
ZeniMax Media Inc. notified Maryland officials via a WARN letter that 379 jobs across its ZeniMax teams in Maryland were eliminated, with almost all affected employees told on July 6, 2026 (about nine were notified earlier). The cuts impacted ZeniMax Online Studios in particular—where more than 200 roles were eliminated—and included senior leadership departures at ZeniMax Online Studios (studio head Joe Burba, executive producer Susan Kath, game director Rich Lambert and production director Ala Diaz). Microsoft’s wider gaming layoffs of roughly 1,600 employees prompted the ZeniMax reductions; the Maryland WARN list named numerous senior roles and more than 60 senior QA testers among those cut. Microsoft and studio notices have announced new internal leadership and indicated transitions to promoted ZOS veterans to run the studio going forward.
A WARN notice filed in Texas confirms ZeniMax Media has laid off 158 employees in the state, with 96 cuts at id Software's Richardson, Texas office plus 40 remote workers tied to that location (136 total at id Software) and 22 at Bethesda Game Studios in Austin. The layoffs come amid a larger Xbox plan to eliminate 3,200 roles across its video game division, with Xbox starting with 1,600 cuts the same week. Sources told Game Developer that id Software lost roughly half its staff and that QA and other teams were heavily impacted; one former employee criticized the restructuring on LinkedIn. The Texas notice also states 146 of the 158 laid-off workers are represented by the Communications Workers of America. Microsoft/Bethesda leadership described the broader restructuring as a refocus on major franchises rather than studio closures.
Microsoft's Xbox layoffs impacted Bethesda-affiliated teams, with ZeniMax Online Studios — the developer of Elder Scrolls Online — reportedly losing about 100 employees in a round of cuts tied to wider Xbox restructuring. Reports indicate staff in the Elder Scrolls Online team were 'gutted,' and affected roles were in the Austin-based ZeniMax Online Studios operations. The reductions followed Microsoft's broader cost-cutting measures across Xbox and Bethesda studios as the company reallocates resources and streamlines projects. Coverage cites internal sources and affected employees describing significant disruption to the studio's development capacity.
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