Leadership Shuffle at ZeniMax Online Studios Amid Game Cancellations
Matt Firor, the head of ZeniMax Online Studios and a pivotal figure in the development of The Elder Scrolls Online, has resigned from his position. His departure coincides with the termination of a previously unannounced MMO project by the studio.
Dear Team,
Reflecting on today’s transitions within Microsoft Gaming, including our group at Bethesda/ZeniMax, it’s tough to part ways with our skilled colleagues and friends. Their contributions have significantly shaped our studios, products, and our collective spirit. I’m grateful for their dedication.
Today is about unity and support. Rest assured, we are committed to assisting our affected employees with the utmost respect and comprehensive support during this challenging period. Should you have any concerns or need assistance, please reach out to your manager or our HR team.
I must also inform you that Matt Firor will be stepping down as the leader of ZeniMax Online Studios, effective July 14. Matt’s leadership over the past 18 years has been instrumental, especially in the success of The Elder Scrolls Online, which under his guidance blossomed into a globally cherished MMO.
I am delighted to announce that Joseph (“Jo”) Burba will succeed Matt Firor as the new Studio Director for ZOS. Jo brings over two decades of industry experience, particularly in live service multiplayer games, and has been an integral part of ZOS for the past thirteen years. His extensive background makes him an excellent choice to lead our next phase.
Transition plans are being finalized by Matt, Jo, and myself – more details will be shared soon. Meanwhile, please extend your best wishes to Matt for his future endeavors and congratulate Jo on his new role.
Thank you all for your unwavering commitment to Bethesda/ZeniMax, our community, and each other.
Jill
This announcement follows a memo from Matt Booty, head of Xbox Game Studios, addressing the broader changes within Microsoft’s gaming division. Notably, this includes the cancellation of anticipated projects like Rare’s Everwild and the reboot of Perfect Dark, along with the shutdown of The Initiative studio. Among these disruptions, the ZeniMax Online’s MMO was also a casualty.
Following a broader directive, we have decided to cease development on Perfect Dark and Everwild, and to wind down several projects, including the closure of The Initiative. These difficult decisions are part of a strategic realignment and focus within our studio operations aimed at fostering greater success amid the evolving industry dynamics.
Despite these changes, our commitment to delivering compelling games remains steadfast, with over 40 projects currently in development and exciting plans through 2026.
We are providing comprehensive support, including severance and career transition aid, to those directly impacted by these changes, ensuring opportunities within other projects where feasible.
I want to express my gratitude to everyone for their creativity and resilience, which continue to define our studios’ ethos. I am confident in the strength of our teams and our future direction.
– Matt
Since acquiring Activision Blizzard in a monumental $69 billion deal, Microsoft has implemented extensive cuts within its gaming sector. These began with the dismissal of 1,900 employees in January 2024, followed by the closure of Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. A subsequent reduction in September 2024 saw 650 more layoffs, and in May of the current year, a drastic cut of 6,000 staff members, representing 3% of its total workforce. The current round of layoffs marks the fourth major reduction in the past 18 months.
The recent layoffs align closely with Microsoft’s announcement of its plans to launch next-generation Xbox consoles and its robust participation at the gamescom video game show.
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