ZeniMax Online Studios leadership included in Xbox mass layoffs
The Elder Scrolls Online maker ZeniMax Online Studios is losing senior and lead talent as part of the Xbox layoffs affecting 379 workers across ZeniMax altogether.
First reported by Game File, the cuts include Joe Burba, a 14-year veteran of the studio who was appointed to run it last July, as well The Elder Scrolls Online executive producer Susan Kath, production director Ala Diaz, and studio game director Rich Lambert.
The leads, according to the report, notified workers about plans to “transition” to a new leadership team consisting of promoted ZeniMax Online Studios veterans. That transition will occur “over the next few months,” according to a copy of the notice reviewed by Game File, which reportedly said the following: “We will remain in place during the transition period to help ensure a smooth handoff.”
Via a Work Adjustment and Retraining Notification (WARN notice) received by Game Developer, the job cuts include the studio head, studio operations director, and studio game director. These cuts join dozens of senior and lead employees, from the VP of global sales and business development to the technical art director.
While there were many individual roles affected across pretty much every department, the quality assurance (QA) division was hit especially hard, with around 89 staff members listed in the WARN notice. This includes a QA manager and QA administrative assistant.
Per the WARN notice, the layoffs will occur on September 4, and set to complete that day for most of the affected workers. Approximately 289 of the impacted staff are represented by the Communications Workers of America.
“For those represented employees who are not yet subject to a collective bargaining agreement, the Company will engage in effects bargaining with the union to determine the employee’s actual termination date,” the notice states. “In addition, some employees may be offered the opportunity to remain employee for a short time period to complete specific projects.”
To recap: 213 people are part of the layoffs at ZeniMax Online Studios, while another 166 employees are being laid off at the offices of ZeniMax Media Inc. in Rockville, Montgomery Country.
Microsoft announced these layoffs last week, which are part of 3,200 job cuts across Xbox. According to the company’s official line, these are part of a “reset” sanctioned by division leader Asha Sharma, who joined Xbox earlier this year. Microsoft explained 1,600 people were being laid off immediately, with another 1,600 cuts to follow before the end of the current fiscal year in June 2027.
Now, labor unions in the United States and Canada have filed unfair labor practice (ULP) charges against Microsoft for allegedly mishandling this latest round of mass layoffs.
“The unions CWA and CWA Canada have jointly filed unfair labor practice complaints against Microsoft alleging the company has unlawfully fired people without giving notice to or discussing it with the union as the employer is legally obliged to do when we are in the middle of ongoing bargaining a collective agreement,” said CWA Canada president Carmel Smyth in an email to Game Developer.
“Basically the employer can not arbitrarily change working conditions while it is engaged in negotiating with the union. We will continue to file legal challenges if necessary, and do all we can to defend the rights of Bethesda Game Studios workers.”
