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The future of The Elder Scrolls Online is uncertain as up to half of the development team has reportedly been laid off

Individuals are already posting about losing their jobs, and the roadmaps for the game are shifting.
Alex Hopley Editor UK 7 July 2026

The Elder Scrolls Online developer Zenimax Online Studios was not safe from Xbox's latest wave of layoffs. Despite the studio itself surviving the great purge of yesterday, it appears that once more Zenimax is undergoing a loss of personnel, following the layoffs that occurred after the cancellation of Project Blackbird a while back.

As reported by Kotaku, more than 20 individuals have already shared that they've been laid off from their jobs over on LinkedIn, with more reporting of meetings with HR to come. Some employees were veterans at Zenimax, having been with the company for ten years or more. Exact numbers aren't known right now, but it's believed that as many as half of the developers working on The Elder Scrolls Online could have been laid off.

This is going to have an impact on the game, and while ESO's community manager has reaffirmed Zenimax's commitment, it has also been made clear that roadmaps are going to change due to this restructuring. "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," Jessica Folsom wrote in a post on the ESO forums.

Those remaining at the studio and those who have been laid off are both concerned at how The Elder Scrolls Online can continue to function with so few people left manning the ship. The Elder Scrolls will be one of Xbox's key franchises going forward, but perhaps ESO isn't a part of those plans.

Editor UK Alex Hopley covered the video game industry for Gamereactor, from new announcements and launches to the business behind them. He also wrote on tech, film and entertainment, and his coverage wasn't tied to any one region.
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