Xbox layoffs raise concerns over Elder Scrolls VI

A major wave of layoffs at Microsoft's Xbox division has raised significant concerns about the future of Bethesda's flagship franchises, particularly the long-awaited "The Elder Scrolls VI." The cuts, part of a strategic reset announced by Xbox CEO Asha Sharma, have heavily impacted studios under the ZeniMax Media umbrella, including the teams behind "The Elder Scrolls Online" and Bethesda Game Studios itself.

According to reports, approximately 1,600 employees were laid off on Monday, July 6, 2026, with an overall plan to cut 3,200 positions this financial year. The initiative aims to streamline decision-making by reducing management layers. However, the Bethesda Game Studios Union has stated that the cuts went far beyond management, affecting dozens of programmers, artists, designers, and testers with decades of experience. The union warned that the quality of future games, specifically naming "The Elder Scrolls VI," could be harmed and has called on players to voice their concerns to Microsoft.

The development team for "The Elder Scrolls Online" appears to have been hit especially hard, with sources indicating as much as half of the staff at ZeniMax Online Studios was laid...