The massive layoffs that swept through Xbox this week have left developers at Bethesda deeply anxious about the future of The Elder Scrolls 6, the studio's most anticipated project. Speaking anonymously, current and former staff painted a picture of damaged morale, mounting development risks, and a game that was already years away from completion now facing potential further delays.
More than 50 employees were cut from Bethesda Game Studios locations, including what staff describe as "key, high-performing people in the trenches." The losses touched every discipline: programmers, artists, designers. One developer noted that even someone who had been with the company since Morrowind was among those eliminated.
The cuts were so striking that staff created makeshift memorials in the Dallas and Rockville offices. Framed photographs of laid-off colleagues were arranged in common areas alongside flowers as informal "Celebrations of Service." At least one display was later dismantled under orders from HR.
"Their loss will have a substantial and cascading effect on the game and morale of this studio," one staff member told IGN. Another summed up the immediate concern: "We were already running a tight ship and are worried about this delaying the game."
The layoffs represent part of a brutal corporate restructuring. Xbox lost roughly 1,600 staff this week under newly installed CEO Asha Sharma, who described it as the most significant restructure in Xbox history. Another 1,600 departures are planned throughout the year as the division attempts to focus on marquee franchises like Halo, Forza, Fallout, and The Elder Scrolls.
Bethesda leadership has framed the cuts as necessary. In a memo to staff, studio boss Jill Braff said the layoffs "reflect the realities of our industry and business" and are required to establish "a more stable foundation." She emphasized the need to strengthen the business, return to sustainable growth, and focus on "strongest franchises."
But Bethesda developers fear the path forward will create new problems rather than solve existing ones. The biggest concern centers on replacement strategy. "There is a fear that we are going to be replaced by cheaper, contracted labor, or we will hire folks to replace them that will need to be onboarded," one developer explained. "Our tools are proprietary, other devs aren't going to know how they work, resulting in more delays, and we'll need to crunch to make up the time."
Management has already begun outsourcing work in other departments. Bethesda's QA operation, once handled by in-house staff, is now managed largely by overseas workers through development outsourcing firm Keywords. Staff report already being asked to train new contractors.
One complication: management has indicated that ZeniMax Online Studios, developer of The Elder Scrolls Online, will help fill gaps on The Elder Scrolls 6. But ZOS itself was devastated by layoffs, with 212 of its staff eliminated. Other ZeniMax properties fared no better. id Software lost 136 of its 185 full-time employees, and beyond Microsoft's gaming division, Obsidian Entertainment cut a quarter of its workforce.
The Elder Scrolls 6 is believed to be at least two years from launch despite being announced eight years ago. The franchise has already skipped one full console generation without a mainline release, and the wait has tested fan patience. Some consolation came from the knowledge that the game was at least in development.
The Bethesda Games Studio Union has attempted to amplify employee concerns by highlighting a post on Xbox's Player Voice feedback platform. With 2,588 upvotes, the post now ranks in the top 20 Xbox user suggestions, drawing attention to the scale of job losses and fan unhappiness with the situation.
Among staff, anxiety extends beyond immediate project concerns. Those who survived the cuts were told they were safe from the planned 1,600 additional departures scheduled for later this year. The promise offered little comfort. "Even if that's true, who's to say there's not another 1,600 next year after that?" one laid-off employee asked. "It's had the chilling effect of realizing you don't get to retire off your work at Xbox. Your time ends when you quit or are laid off, that's it."
Author Emily Chen: "The irony is brutal: Sharma is cutting the veterans who know how to make The Elder Scrolls work, then banking on contractors and newcomers to ship one of gaming's most essential franchises on time."
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