Xbox Layoffs Gut Bethesda Studios, ESO Team Hit Hard as Focus Shifts to Big Franchises

Microsoft's latest sweeping round of Xbox layoffs has landed with devastating force across Bethesda and ZeniMax studios, with workers and union representatives confirming that teams have been deeply cut. The Elder Scrolls Online developer, ZeniMax Online Studios, has been described as "gutted," with senior talent departing and internal development roadmaps already reported to be "shifting" as a direct result of the job losses. id Software, the team behind DOOM, has also been hit hard, though reports suggest the studio has survived the cuts — albeit in a significantly reduced state.

In the wake of the restructuring, Bethesda is reportedly pivoting its focus toward its biggest and most commercially proven franchises — including The Elder Scrolls, Fallout, and DOOM — effectively streamlining its operations around marquee IP. This refocusing signals a leaner, more franchise-driven future for the publisher, with smaller or more experimental projects likely to fall by the wayside. On a brighter note for fans, reports indicate that ZeniMax's pivot to major series does not spell the end for beloved id Software properties like Quake and Wolfenstein, which are expected to remain part of the company's long-term plans.

Sources