ZeniMax Online Studios, the acclaimed developers behind the popular online role-playing game The Elder Scrolls Online, is currently navigating a period of significant change. Recent widespread layoffs across Xbox’s gaming division have led to a major restructuring within the studio, affecting its leadership team and a substantial portion of its workforce. This move raises questions about the future direction and stability of the long-running title.
ZeniMax Online Undergoes Major Leadership Transition Amidst Xbox Restructuring
In a notable development for the gaming industry, ZeniMax Online Studios, the creative force behind The Elder Scrolls Online, experienced a profound upheaval last week. Joseph Burba, who had spearheaded the studio for 14 years and played a pivotal role in The Elder Scrolls Online's success since its 2014 debut, was among over 200 employees affected by Xbox’s extensive job cuts. Burba had been promoted to studio lead in July of the previous year.
The extent of these organizational changes was brought to light through documents obtained by Game File from the state of Maryland, where both ZeniMax Online Studios and its parent entity, ZeniMax Media Inc., are headquartered. Beyond Burba, other crucial members of The Elder Scrolls Online’s executive team—including executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz—also saw their positions eliminated.
To ensure a smooth transition, these four departing leaders are expected to remain with the studio for the next few months. Their immediate task will be to facilitate the handover to a new leadership team, which will comprise Nick Giacomini, currently the game lead for The Elder Scrolls Online, and Josh Henderson, the studio’s business operations lead.
An internal communication from the outgoing leadership expressed strong confidence in the new appointments, stating, “We have tremendous confidence in Josh and Nick, the future of this studio, and the continued growth of ESO.” The memo underscored the belief that the passion, creativity, and commitment of the team and community would remain the driving force behind The Elder Scrolls Online, especially as development progresses on upcoming content such as Update 51 and beyond.
These layoffs are part of a broader trend, with ZeniMax Online’s workforce having decreased significantly since late 2024. Following multiple rounds of job reductions in 2025 and 2026, the studio has reportedly lost at least 40% of its staff. This latest round of cuts, impacting 213 individuals at ZeniMax Online Studios and an additional 166 at ZeniMax Media (including Bethesda Game Studios and its publishing operations), represents a substantial recalibration within Microsoft's gaming ecosystem. While reducing executive salaries may offer short-term financial relief, the loss of seasoned leaders like Burba, who possess decades of invaluable institutional knowledge, could present long-term challenges.
Despite the considerable reduction in staff, community manager Kevin Gbolie indicated that the studio remains committed to delivering high-quality content. Following the announcement of the layoffs, Gbolie reassured players that “the plan is still to deliver great content, and we will hopefully have an update soon.” The path to achieving growth for The Elder Scrolls Online with a considerably leaner team remains to be seen, but the studio’s commitment to its player base appears unwavering.
The recent executive changes at ZeniMax Online Studios highlight the volatility within the modern gaming industry, even for successful titles. While cost-cutting measures are often deemed necessary, the departure of key personnel with extensive experience inevitably sparks discussions about the impact on creative vision and long-term development. The challenge now for the new leadership will be to maintain the quality and player engagement of The Elder Scrolls Online while navigating a significantly altered operational landscape. This situation serves as a poignant reminder of the human cost involved in corporate restructuring and the delicate balance between business decisions and creative integrity in the world of video game development.
