Zenimax Online Studios lost several senior leaders as part of a fresh round of Xbox layoffs, deepening concerns about the long-term future of The Elder Scrolls Online. Studio head Joe Burba, executive producer Susan Kath, game director Rich Lambert and production director Ala Diaz all departed, with Microsoft's cuts removing over 200 jobs from the studio. This marked the second consecutive year of major layoffs at the studio, following last year's cull that saw former studio head Matt Firor leave and an MMO project, Project Blackbird, cancelled.

The departures were detailed in a Maryland WARN letter obtained by Game File, listing 379 roles cut across Zenimax Media and Zenimax Online Studios combined. Leadership passed internally to Josh Henderson, formerly head of business operations, and Nick Giacomini, promoted to game director the previous August, who are steering the studio through the transition. Despite the repeated cuts, studio staff maintain the Elder Scrolls Online team remains at a size comparable to when it shipped the Wrothgar and Summerset expansions, though the game's resilience amid Microsoft's broader restructuring of its studios remains to be seen.