{"id":7961,"date":"2026-07-06T17:18:37","date_gmt":"2026-07-06T17:18:37","guid":{"rendered":"https:\/\/delimiter.online\/blog\/xbox-layoffs-bethesda-id-software\/"},"modified":"2026-07-06T17:18:37","modified_gmt":"2026-07-06T17:18:37","slug":"xbox-layoffs-bethesda-id-software","status":"publish","type":"post","link":"https:\/\/delimiter.online\/blog\/xbox-layoffs-bethesda-id-software\/","title":{"rendered":"Massive layoffs hit Xbox studios including Bethesda and id Software"},"content":{"rendered":"

Microsoft\u2019s gaming division Xbox has conducted a significant wave of layoffs across multiple subsidiaries, with job losses confirmed at Bethesda and id Software and new reports indicating severe cuts at Zenimax Online Studios<\/a>. The reductions are the latest in a series of workforce contractions affecting the video game industry throughout 2026.<\/p>\n

The layoffs first came to light as employees at Bethesda, a subsidiary of Microsoft\u2019s Xbox division, reported being let go. Shortly after, sources confirmed that id Software, the famed developer behind the Doom and Quake series, also experienced staff reductions. The cuts are part of a broader restructuring within Microsoft\u2019s gaming operations that began earlier in the year.<\/p>\n

Brutal cuts at Elder Scrolls Online developer<\/h2>\n

A July 6 report from Kotaku described what it called \u201cbrutal\u201d cuts at Zenimax Online Studios, the team responsible for operating The Elder Scrolls Online. According to the report, up to half of the development team could be impacted. This would represent a substantial reduction for the studio, which has maintained the massively multiplayer online role-playing game since its launch in 2014.<\/p>\n

A post on the game\u2019s official forums acknowledged the layoffs and their consequences for upcoming content. The studio confirmed it remained committed to the game but stated, \u201cthe roadmaps we previously shared will be shifting.\u201d No specific timeline for revised content plans was provided.<\/p>\n

Background and context<\/h2>\n

Microsoft completed its $7.5 billion acquisition of Zenimax Media, the parent company of Bethesda, id Software, and Zenimax Online, in 2021. The integration of these studios into the Xbox ecosystem has been ongoing, with several games releasing exclusively on Xbox and PC platforms. However, the current round of layoffs suggests internal restructuring continues, likely driven by cost-cutting measures and shifting priorities within Microsoft\u2019s gaming business.<\/p>\n

The Xbox layoffs<\/a> follow a broader trend across the video game industry in 2026. Major publishers including Electronic Arts, Sony, and Riot Games have all announced workforce reductions this year, citing economic pressures and a post-pandemic normalization of consumer spending. According to industry analysts, at least 10,000 game development jobs have been lost globally in the first half of 2026 alone.<\/p>\n

Reactions and implications<\/h2>\n

Employee morale is reported to be low among affected teams, particularly at Zenimax Online, given the scale of the reductions. Industry observers note that the loss of experienced developers at key studios could delay planned releases and affect the quality of live-service games like The Elder Scrolls Online, which relies on regular content updates to retain its player base.<\/p>\n

For id Software, the layoffs may impact the development of future titles in the Doom franchise, though the company has not issued any public statement. Bethesda is currently working on several major projects including the upcoming sci-fi title Starfield and the long-anticipated Elder Scrolls VI, but no timeline has been announced for either game.<\/p>\n

Next steps<\/h2>\n

Microsoft has not released an official statement regarding the total number of employees affected across the three studios. Affected staff will receive severance packages and outplacement support, according to internal sources. The company is expected to provide more details in its next quarterly earnings report, scheduled for late July 2026. The video game industry will likely continue watching for further layoffs as Microsoft aligns its studio operations with its broader corporate strategy.<\/p>\n

Source: Kotaku<\/p>\n","protected":false},"excerpt":{"rendered":"

Microsoft\u2019s gaming division Xbox has conducted a significant wave of layoffs across multiple subsidiaries, with job losses confirmed at Bethesda and id Software and new reports indicating severe cuts at Zenimax Online Studios. The reductions are the latest in a series of workforce contractions affecting the video game industry throughout 2026. The layoffs first came […]<\/p>\n","protected":false},"author":1,"featured_media":7962,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[388],"tags":[416,456,9347,9348,3137,749,9346,9349],"class_list":["post-7961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-games","tag-layoffs","tag-microsoft","tag-bethesda-job-cuts","tag-id-software-layoffs","tag-microsoft-gaming","tag-xbox-game-studios","tag-xbox-layoffs","tag-zenimax-online-studios"],"_links":{"self":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/posts\/7961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/comments?post=7961"}],"version-history":[{"count":0,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/posts\/7961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/media\/7962"}],"wp:attachment":[{"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/media?parent=7961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/categories?post=7961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/delimiter.online\/blog\/wp-json\/wp\/v2\/tags?post=7961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}