ZeniMax Online Studios has been significantly impacted by Microsoft’s latest round of mass layoffs, with more than 200 staff members departing the company last week. The cuts include the loss of high-level leadership, most notably studio lead Joseph Burba, who has been with the studio for 14 years and worked on The Elder Scrolls Online since its 2014 launch.

Quick Facts

  • Total layoffs: 213 staff from ZeniMax Online Studios and 166 from ZeniMax Media.
  • Departing executives: Joseph Burba (Studio Lead), Susan Kath (Executive Producer), Rich Lambert (Game Director), and Ala Diaz (Production Director).
  • New leadership: Nick Giacomini (Game Lead) and Josh Henderson (Business Operations Lead) will head the studio.
  • Workforce reduction: ZeniMax Online has seen its headcount contract by at least 40% since late 2024.

Leadership Transition

According to documents obtained by Game File, the four departing executives will remain with the studio for the next few months to assist in the transition to the new leadership team. In an internal memo, the outgoing leaders expressed confidence in the future of the studio and its flagship title, noting that the team is currently wrapping up work on Update 51 and beyond.

"We have tremendous confidence in Josh and Nick, the future of this studio, and the continued growth of ESO," the memo stated. "With exciting experiences still ahead for our players... we believe that your passion, creativity, and commitment to each other and the community will continue serving as the heartbeat of ESO."

Impact on Studio Operations

The scale of the reduction is substantial. Based on union membership data, the studio's headcount was approximately 461 in late 2024. Following the recent waves of layoffs throughout 2025 and 2026, the studio has lost at least 40% of its workforce. The departure of long-standing personnel like Burba represents a significant loss of institutional knowledge for the The Elder Scrolls Online development team.

Despite the contraction, the studio maintains that its development goals remain unchanged. ESO community manager Kevin Gbolie indicated that the current plan is to continue delivering content to players, with further updates expected soon.