ZeniMax Online Studios is losing its top brass. Studio head Joe Burba, a 14-year veteran of the company, is out alongside Elder Scrolls Online executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz. Their positions surfaced in a WARN notice ZeniMax filed with Maryland officials, and the timing carries a particular sting: Burba was only appointed to run the studio last July, having been elevated in the aftermath of the previous round of mass Xbox layoffs. Promoted by one cull, removed by the next.
The Numbers Behind the Notice
The Maryland filing lists 379 eliminated roles in total, of which 213 sit at ZeniMax Online Studios specifically, with the balance spread across Bethesda Game Studios and the central publishing office. Nearly all of those affected were notified on July 6, with the fine print noting roughly Nine people learned their positions were gone before that date. The notice initially listed job titles without names, and it was a single entry reading "studio head" that prompted the obvious question, which Microsoft subsequently confirmed belonged to ZOS.
Other senior roles appear on the list too, including studio operations director, studio audio director, studio art manager, vice president and controller, and vice president of global sales and Business development, though it isn't possible to confirm every one of those sat at ZOS rather than elsewhere in the ZeniMax structure.
The cumulative damage is severe. ZOS has reportedly shed at least 40% of its workforce since late 2024, when its headcount stood at roughly 461, and this round lands barely a year after the cancellation of Project Blackbird, the studio's unannounced MMO, triggered its own wave of departures.
The Handover
Josh Henderson, previously head of Business operations, will take over as studio head, working alongside Nick Giacomini, who was himself only promoted to ESO game director last August. The outgoing leadership team told staff the transition will play out "over the next few months," with the current seniors "remaining in place during the transition period to help ensure a smooth handoff."
Their note to employees struck a determinedly upbeat tone. "We have tremendous confidence in Josh and Nick, the future of this studio, and the continued growth of ESO," it read, adding that "with exciting experiences still ahead for our players as we wrap up work for Update 51 and beyond, we believe that your passion, creativity, and commitment to each other and the community will continue serving as the heartbeat of ESO."
The People Doing the Work Aren't as Confident
ESO's community manager offered a cautious line once the cuts landed, saying the team wants "to take the time to evaluate the work in front of us and then lock down an updated schedule," while the studio has claimed its development team remains as large as it was when it shipped the well-received Wrothgar and Summerset expansions.
Senior encounter designer Morgan Goin was considerably blunter, telling the BBC that "we're not going to be able to put out the amount of content at the speed that we were, or anything approaching that." She said she felt blindsided.
There's also a claim circulating from a former ESO developer that lands hard given what's already emerged about Xbox's finances, namely that the MMO "basically funded other failing projects." That echoes the reporting that Minecraft's profits were used to prop up the wider Xbox portfolio, and it paints a consistent picture of a division where the reliably profitable products were quietly subsidising the ones that weren't, right up until the correction arrived.
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