We at NerdLeaks are watching worrying claims about the future of The Elder Scrolls Online. According to Push Square, recent Xbox layoffs have allegedly "decimated" the team at Zenimax Online Studios, and that could force major changes to previously announced plans for the game — if true, take this with a pinch of salt.
What Was Reported
Push Square reports that Microsoft cut approximately 1,600 job losses this week, and that a further 1,600 roles will be terminated over the course of the coming year, a round of cuts said to downsize the gaming division by 20%. Per Push Square, Zenimax Online Studios had already lost staff last year, and the latest wave of layoffs has left the studio "decimated," according to those reports.
Crucially, Kotaku is cited by Push Square as saying the latest blow leaves the future of The Elder Scrolls Online "unclear." The exact extent of the layoffs at Zenimax Online Studios has not been revealed, but it has been reported that as much as half of the studio may be gone.
Community manager Jessica Folsom is quoted as saying the content "roadmaps we previously shared will be shifting" while the team steps back to straighten out plans for the future. Notably, The Elder Scrolls Online debuted in 2014 and is scheduled to introduce a new seasonal update structure later this week, which Push Square suggests will presumably be unaffected by these changes.
The Source & Credibility
We are basing this report on what Push Square has published, which itself references reporting from Kotaku and includes a direct quote from Jessica Folsom. That gives this story a chain of sources, but there are important unknowns:
- The exact number of staff affected at Zenimax Online Studios has not been publicly confirmed.
- The claim that as much as half of the studio may be gone is presented as a report rather than a confirmed fact.
- Push Square states that Microsoft avoided studio closures while carrying out the layoffs, but the overall operational impact on specific live-service games remains unclear.
So while there are multiple outlets or sources involved, several key details remain unverified. Take this with a pinch of salt — the word "allegedly" is appropriate here given the admitted uncertainty.
What It Could Mean
If the worst of these reports is accurate — namely that a large proportion of Zenimax Online Studios staff were let go — there are multiple potential implications for The Elder Scrolls Online.
- Roadmap Changes: Jessica Folsom has reportedly said the "roadmaps we previously shared will be shifting", which suggests planned content delivery could be delayed, scaled back, or restructured.
- Operational Strain: Running a long-term live-service MMO with a much smaller team would be challenging; Push Square flags the question of how the studio can continue supporting the game with approximately half its staff gone — if that figure proves accurate.
- Short-Term Continuity: Per Push Square, the new seasonal update structure set for rollout later this week is presumed to be unaffected — but that presumption may be tested as the situation develops.
All of the above is conditional. These are possible outcomes based on reporting so far, and should be regarded as speculative until more definitive details emerge from the studio or Microsoft.
Why This Matters
This story matters because The Elder Scrolls Online is a long-running live-service title that players and communities rely on for planned content and ongoing support. If Zenimax Online Studios has indeed lost a substantial portion of its team, the way that content is planned and executed could change materially. According to Push Square, Microsoft’s broader reductions — the combined waves of 1,600 job losses this week and another 1,600 roles planned over the coming year — represent a significant contraction of resources.
We’ll be monitoring for direct confirmation from Zenimax Online Studios or Microsoft, and we’ll update readers as more reliable information becomes available. For now, take the reports with a grain of caution: they are concerning, potentially game-changing, and still not fully verified.
