As part of Xbox's announcement of over 3,200 staff reductions company-wide, ZeniMax Online Studios—developer of the popular MMO The Elder Scrolls Online—is losing more than 200 employees, including studio head Joe Burba and senior directors across operations, game, and audio functions. The studio will transition to shared leadership under Josh Henderson and Nick Giacomini, both promoted from within, over the coming months.

While the departures mark significant upheaval, the game's healthy content roadmap through year-end and precedent from other successful MMOs surviving similar crises offer some reassurance. However, this represents the second major round of cuts at ZeniMax Online in as many years, with the studio's total headcount now roughly 40 percent smaller than in 2024, raising questions about the studio's capacity to support ongoing development at its current scale.