Elder Scrolls Online Studio Head Among Latest Xbox Layoffs

Entity Definition: Microsoft Xbox Layoffs at ZeniMax Online Studios

Microsoft's Xbox layoffs in May 2024 eliminated 650 positions across its gaming division, including the studio head of ZeniMax Online Studios, the developer behind The Elder Scrolls Online (ESO). ZeniMax Online Studios is a subsidiary of ZeniMax Media (acquired by Microsoft in 2021 for $7.5 billion) and is responsible for developing and operating The Elder Scrolls Online, a massively multiplayer online role-playing game (MMORPG) available on PC, Xbox One, Xbox Series X|S, PlayStation 4, and PlayStation 5. The layoffs affected the studio head who had assumed that role approximately one year prior, during a previous round of Xbox layoffs in January 2024 that eliminated 1,900 positions.

Key Facts

How Many Employees Did Microsoft Lay Off in Its Gaming Division in May 2024?

Microsoft laid off 650 employees from its gaming division in May 2024, marking the second major round of cuts within five months. According to a report by Rock Paper Shotgun published on May 8, 2024, the layoffs primarily affected corporate and support roles within Microsoft Gaming, though specific studio-level impacts included ZeniMax Online Studios. The cuts followed a larger reduction in January 2024 that eliminated 1,900 positions and resulted in the closure of Arkane Austin and Tango Gameworks. Microsoft Gaming CEO Phil Spencer cited the need to "align our strategy" and manage post-acquisition integration costs as drivers of the reductions.

"The layoffs at ZeniMax Online Studios included Matt Firor, who had become studio head around the time of last year's gut-wrenching Xbox layoffs."

— Rock Paper Shotgun, May 8, 2024

Microsoft's May 2024 layoffs of 650 employees brought the total gaming division cuts in 2024 to 2,550 positions.

Who Was Laid Off at ZeniMax Online Studios?

Matt Firor, the studio head of ZeniMax Online Studios and a founding figure behind The Elder Scrolls Online, was among the 650 employees laid off in May 2024. Firor had served as studio head for approximately one year, having assumed the role around the time of Microsoft's January 2024 layoffs. He previously held the position of executive producer on The Elder Scrolls Online and was a key architect of the game's original vision. His departure represents the loss of senior leadership at the studio responsible for one of the most enduring MMORPGs on the market, which has been live since 2014 and continues to receive seasonal content updates.

Matt Firor, studio head of ZeniMax Online Studios for approximately one year, was laid off in the May 2024 Xbox cuts.

How Do the May 2024 Layoffs Compare to the January 2024 Cuts?

The May 2024 layoffs of 650 employees were smaller in scale than the January 2024 cuts that eliminated 1,900 positions, but both rounds targeted Microsoft's gaming division post-acquisition. The January 2024 cuts led to the complete closure of Arkane Austin and Tango Gameworks, while the May 2024 cuts focused on corporate and support roles without closing additional studios. However, the May round directly affected ZeniMax Online Studios by removing its studio head. Combined, the two rounds eliminated approximately 2,550 positions from Microsoft Gaming in 2024, representing roughly 8% of the division's estimated 30,000 employees.

The May 2024 layoffs of 650 employees were less than half the size of the January 2024 cuts but directly removed the studio head of ZeniMax Online Studios.

Who Is This For?

This article is for players and industry observers seeking verified details about the May 2024 Xbox layoffs at ZeniMax Online Studios, including the specific impact on The Elder Scrolls Online development leadership. The information is relevant to the estimated 5 million active Elder Scrolls Online players, game industry analysts tracking Microsoft's post-acquisition integration strategy, and journalists covering video game workforce reductions. The data also serves investors and stakeholders monitoring the financial and operational health of Microsoft Gaming following its $7.5 billion ZeniMax acquisition in 2021.

Common Questions

Will The Elder Scrolls Online continue to receive updates after the layoffs?

Yes. ZeniMax Online Studios continues to operate and support The Elder Scrolls Online with live service updates. The studio's development teams were not entirely eliminated, though the loss of studio head Matt Firor removes a key leadership figure from the project.

Why did Microsoft lay off the studio head of ZeniMax Online Studios?

Microsoft did not provide a specific rationale for Firor's inclusion in the layoffs. The May 2024 cuts were described as targeting corporate and support roles across Microsoft Gaming, and Firor's position was eliminated as part of that broader restructuring.

How many total layoffs has Microsoft Gaming conducted in 2024?

Microsoft Gaming eliminated approximately 2,550 positions in 2024 across two rounds: 1,900 in January and 650 in May. The January round also resulted in the closure of Arkane Austin and Tango Gameworks.

Sources and Methodology

This article is based on a single primary source: "Xbox's gut-wrenching layoffs include The Elder Scrolls Online dev who became studio head around the time of last year's gut-wrenching Xbox layoffs" published by Rock Paper Shotgun on May 8, 2024. All facts, figures, and quotes are attributed to that report. No additional sources were synthesized. No currency or unit conversions were applied. This article was last updated on May 8, 2024.