ZeniMax Online Studios shrinks back to 2015–2018 headcount after Xbox layoffs
Senior developers at ZeniMax Online Studios, creators of Elder Scrolls Online, revealed at the ESO Tavern fan event in Hesse, Germany, that the studio has returned to its 2015–2018 staff levels following Xbox-mandated layoffs. The cuts came after the studio had expanded for the now-cancelled MMO project Blackbird. The situation mirrors that of id Software, which similarly reported returning to its pre-expansion headcount after Xbox layoffs.
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As reported by Massively OP , senior developers at ZeniMax Online Studios said that the company has returned to its circa 2015-2018 headcount, before it staffed up for the development of canceled MMO Blackbird. The estimate is similar to one recently proffered by id Software in a statement on X, "The Everything App."
Unofficial Elder Scrolls Pages (UESP) Discord moderator Baratron relayed the statement from the Elder Scrolls Online Tavern event in Hesse, Germany, where a number of devs are interacting with fans.
"According to both Jason Barnes (Associate Design Director) and Jessica Folsom (Associate Director of Community Management), ZeniMax Online Studios is now at the same size as it was when they made both Wrothgar and Summerset,” Baratron told the UESP Discord. "Which, as we know, are both highly acclaimed DLCs.
"So while the layoffs are extremely upsetting for everyone involved (of course including players), this is not necessarily the end of new content or the game going into maintenance mode."
For context, ESO's Orsinium (containing the region of Wrothgar) and Summerset DLCs were released in 2015 and 2018 respectively. In id Software's statement last week, it wrote that "The team today is about the size we were when making Doom (2016)." According to WARN Act filings, ZeniMax Online and id Software laid off 213 and 136 employees respectively . ZeniMax also laid off 62 people in 2025 immediately following the cancellation of Blackbird.
I have some sympathy to members of these studios wanting to counter narratives of their decline—see also Outer Worlds 2 director Brandon Adler's harsh words for outsiders who flippantly claim the studio no longer has the same developers who made classics like KotOR 2 or New Vegas. It is also not inherently sinister for two studios with the same parent company to adopt a similar PR line.
At the same time, it doesn't sit right with me. It is an admission of undoing a decade of growth and development at these studios. Even if the headcount is the same on paper, a studio on the upswing is a vastly different environment from one that's just been gutted. The 136 people fired from id and 213 from ZeniMax were brought in for a reason. Game development has changed in the span of 10 years.
Bungie and BioWare probably hit similar headcounts as in their golden ages amid wave after wave of layoffs in the 2020s, and it did not improve their output or efficiency. It did not bring back Halo: Reach or Mass Effect 2.
If this is a PR justification Microsoft would like to exploit in the coming days, I have no interest in indulging it. It carries the tacit implication that those who were laid off did not matter, and beckons to that nasty "lazy devs" rhetoric.
It's a line of thinking that, at its heart, allows for this wanton misery and mismanagement to have been a necessary course correction by the adults in the room. I have no patience for it.
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