Microsoft Layoffs Impact Elder Scrolls Online Leadership Team

Recent layoffs at Microsoft have affected the leadership team of the Elder Scrolls Online, bringing about significant changes within the studio. Among those departing is Jo Burba, the studio head who had taken on the role just before last year’s mass layoffs at Microsoft. With Burba and other key figures leaving, a transition to a new leadership team for the MMO is currently in progress.

Reports indicate that studio head Jo Burba, along with executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz, have all been let go. These individuals played crucial roles in shaping the future of the Elder Scrolls Online following the previous cuts at Xbox in 2025, which led to the cancellation of an MMO project overseen by ZeniMax Online Studios founder Matt Firor.

To address the departure of key leadership members, Microsoft plans to retain the laid-off employees for the next few months while transitioning control to Josh Henderson, ZeniMax’s former head of business operations, and Nick Giacomini, who was recently promoted to ESO game director in August 2025.

The departing high-level developers expressed confidence in the future of the studio under the new leadership, emphasizing the exciting experiences that lie ahead for players as they wrap up work on Update 51 and beyond. They believe that the passion, creativity, and commitment of the community will continue to drive the success of ESO.

In a recent interview with the BBC, senior encounter designer Morgan Goin, who was also laid off from ZeniMax, expressed concerns about the future of the MMO. Goin mentioned challenges in delivering content at the same pace as before and hinted at potential delays in upcoming releases. ZeniMax has acknowledged the need to assess their current projects and establish a revised schedule in light of the recent layoffs.

According to a WARN notice, a total of 379 ZeniMax jobs in Maryland have been affected by the recent layoffs. Our thoughts go out to all the developers impacted by these changes, as well as those who remain at the studio.