A fresh wave of layoffs within Microsoft's gaming division has severely impacted Bethesda Game Studios and ZeniMax, with some internal teams reportedly losing as much as half their staff. This reduction adds to a series of adjustments the company has made across its studio portfolio in recent months, and there are signs the process is not yet over.
ZeniMax Online Studios, the team behind The Elder Scrolls Online, and id Software, creators of the Doom franchise, survived this latest round, though not unscathed—both studios experienced significant staff cuts. The exact scale of losses at each studio has not been officially confirmed, but labor organizations representing industry workers have described the impact as severe, particularly within Bethesda Game Studios itself.
The cuts come as Microsoft continues efforts to trim operating costs across its gaming division despite the sheer size of its studio catalog, largely built through the acquisitions of ZeniMax Media in 2021 and Activision Blizzard in 2023. These recent layoffs fit into a broader industry pattern in which several companies have reduced headcount even after successful launches or amid active development projects.
The total number of employees affected in this specific round has not been officially disclosed, nor has it been confirmed whether additional studio closures or project cancellations are planned. There are indications, however, that further adjustments could be on the way in the coming weeks, leaving much of the Xbox workforce in a state of uncertainty about their roles.
The situation has raised concern among developers and fan communities closely following the future of franchises like Doom, The Elder Scrolls, and Fallout, all under the Bethesda and ZeniMax umbrella. For now, Microsoft has not issued a detailed statement addressing the full scope of the cuts or the direction these studios will take in the near term.