The Elder Scrolls Online will not be able to maintain its previous pace of updates following major layoffs at ZeniMax Online Studios, according to a former senior developer affected by the cuts.
Morgan Goin, who worked as a Senior Encounter Designer, said the remaining team would not be able to produce the same amount of content at anything close to its earlier speed. The comments provide a clearer picture of how the recent Xbox restructuring may affect one of Microsoft’s longest running and most commercially successful online games.
ZeniMax Online Studios has also undergone a quiet leadership change. Studio Head Joe Burba, Executive Producer Susan Kath, Studio Game Director Rich Lambert, and Production Director Ala Diaz have reportedly departed. Josh Henderson and Nick Giacomini are now leading the team, with Giacomini having previously replaced Lambert as Game Director on The Elder Scrolls Online.
Despite the disruption, the studio says there are no plans to place the game into maintenance mode. Development will continue, although its roadmap and release schedule are likely to change.
The remaining team says Elder Scrolls Online will continue receiving new content
Studio representatives recently said the current workforce is similar in size to the teams that developed the Wrothgar and Summerset expansions.
That comparison suggests ZeniMax Online Studios still has enough developers to produce meaningful updates. However, the modern version of The Elder Scrolls Online is larger and more complicated than it was during those earlier periods.
The game now includes more regions, systems, platforms, storylines, and technical dependencies. Maintaining existing content while building new features requires substantial engineering, testing, writing, art, and design resources.
| Area | Current position |
|---|---|
| Maintenance mode | Not planned |
| Update pace | Expected to slow considerably |
| Development team | Reduced following layoffs |
| Leadership | Several senior departures |
| Current model | Seasonal content |
| Previous model | Annual expansion structure |
| Major future features | Roadmap under review |
| Commercial performance | Reportedly remained healthy |
A smaller team may need to choose between producing fewer large updates or maintaining a similar number of releases with less content in each one. ZeniMax has not yet explained which approach it will take.
The studio had recently changed its live service strategy
The layoffs arrived shortly after The Elder Scrolls Online moved from its traditional expansion model to a seasonal structure.
That change was intended to give the development team more flexibility. Instead of following the same annual content pipeline, the studio could introduce new systems, experimental activities, and updates that better matched player feedback.
Its 2026 roadmap included broader changes and ambitious ideas, including naval battles. Season One had only recently launched when another round of Xbox cuts affected the studio.
ZeniMax Online Studios later acknowledged that the roadmap would need to be revised. It has not yet released a complete replacement schedule.
The seasonal model could make it easier to adjust plans because the studio is no longer committed to one large expansion every year. It may also create uncertainty if players do not know when major story content or new regions will arrive.
External contractors cannot immediately replace experienced developers
One concern is that Microsoft may attempt to reduce costs by relying more heavily on contractors and outside support studios.
That approach has limitations for The Elder Scrolls Online because the game runs on a custom internal engine. New developers need time to understand its tools, technical restrictions, production processes, and large existing codebase.
One internal estimate suggested that a new contractor could require at least six months before becoming fully productive.
Experienced employees also carry knowledge that is difficult to document. They understand why systems were built in a certain way, how older content interacts with newer features, and which changes are likely to create unexpected problems.
Replacing that knowledge with cheaper external labor may reduce immediate staffing costs, but it can slow development and increase the risk of bugs or delays.
The cuts came despite reported commercial stability
The Elder Scrolls Online has generated more than $2 billion in lifetime revenue and continues to maintain an active audience.
People within the studio reportedly believed the game was performing well against Microsoft’s targets. Internal information showed improving metrics, while the project continued to cover its costs.
That makes the scale of the cuts more difficult to connect to the game’s individual performance. The layoffs appear to be part of a wider Xbox restructuring rather than a direct response to The Elder Scrolls Online failing commercially.
ZeniMax Online Studios was also affected by the cancellation of Project Blackbird, an unannounced science fiction online game that had been in development for years. Hundreds of people connected to that project reportedly lost their jobs, and studio founder Matt Firor later left the company.
After Blackbird was cancelled, the studio concentrated more heavily on The Elder Scrolls Online. The latest cuts have now reduced the staff available for that work as well.
Leadership departures add another period of transition
The departure of several senior leaders creates additional challenges beyond the loss of production staff.
Executives and directors help define priorities, approve features, coordinate teams, and manage schedules. Replacing several of them at the same time can slow decision making while new leaders assess the state of development.
Henderson and Giacomini must now guide the studio through a revised roadmap with fewer employees and strong expectations from an established player base.
The team will also need to maintain confidence among remaining developers. Goin described a period of uncertainty before the layoffs, when employees knew cuts were coming but did not know who would be affected or how extensive they would be.
That environment can damage morale and make it harder to retain experienced staff after the official layoffs are complete.
The Elder Scrolls Online is not ending, and the studio remains capable of producing new content. The more likely outcome is a slower and more selective release schedule, with ZeniMax focusing its reduced resources on the updates it considers most important.
The next roadmap will show how much of the planned seasonal content, new systems, and larger features can survive the restructuring.
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