A wave of layoffs across Xbox's gaming division struck Bethesda's Montreal studio on the same day the company announced a major Fallout project, with affected workers receiving only the statutory minimum severance and facing immediate loss of health insurance coverage. The union representing the laid-off employees criticised the company for the timing of the announcement and the minimal financial support provided to departing staff.

The job cuts have created ripple effects across ZeniMax's portfolio, with The Elder Scrolls Online's development team now operating under significant resource constraints. Citing reduced "team bandwidth" following the layoffs, developers have scaled back planned features, including an upcoming in-game store expansion, as the long-running MMO adjusts to smaller working capacity.