Xbox has laid off 379 Zenimax workers in Maryland

Hundreds of ZeniMax employees based in Maryland have been laid off by Xbox maker Microsoft following the company’s fifth major round of job cuts in three years.

A Work Adjustment and Retraining Notification (WARN notice) shared with the Maryland Department of Labor confirms that 213 people have been jettisoned at The Elder Scrolls Online developer ZeniMax Online Studios, which was also the target of layoffs in June 2025.

Another 166 people have been laid off at the offices of ZeniMax Media Inc. in Rockville, Montgomery Country. The cuts will become effective on September 4, 2026.

It’s unclear how many workers will remain at ZeniMax Online Studios following the latest round of layoffs, with the studio also losing key talent last year after Microsoft chose to cancel an in-development MMO codenamed Project Blackbird that purportedly impressed former Xbox boss Phil Spencer (thanks, Bloomberg).

In 2024, 461 employees at the studio voted to unionize with support from the Communications Workers of America. The majority of those workers were based in Maryland.

Related:ZA/UM Studios to lay off up to 32 workers two months after releasing Zero Parades: For Dead Spies

A Microsoft spokesperson directed Game Developer to a statement shared by The Elder Scrolls Online team on Reddit when approached for comment as to how the layoffs will impact ZeniMax Online Studios.

“As we get ready to launch Season One this week, we wanted to reaffirm our commitment to The Elder Scrolls Online. Our team’s immediate focus is on launching Season One, which we’re all excited for you to jump in,” reads the post.

“Looking beyond Season One, the roadmaps we previously shared will be shifting. We want to take the time to evaluate the work in front of us and then lock down an updated schedule. While we’d love to share a concrete details today, stepping back to get our plans straight will let us come back to you with a clear timeline. This game is nothing without you, our community. Thank you for sticking with us, and for everything you bring to Tamriel.”

Microsoft announced it will be cutting 3,200 jobs across Xbox earlier this week as part of a “reset” sanctioned by newly-minted division leader Asha Sharma. The company explained 1,600 people are being laid off immediately, with another 1,600 cuts to follow before the end of the current fiscal year in June 2027.

At the time of writing, we know the decision has resulted in significant layoffs at other internal studios including Obsidian and id Software.