Bethesda boss says the company must focus on its "strongest franchises" as Xbox layoffs reportedly hit The Elder Scrolls and Fallout makers hard

As Bethesda is reportedly hit hard with layoffs from Microsoft, president Jill Braff has apparently told staff of the plan to focus on the company's strongest franchises going forward. This week, Xbox announced its fifth wave of layoffs since purchasing Activision Blizzard, with this ongoing wave set to see 3,200 staff laid off over the next year. From the sounds of things, Bethesda is going to be one of the most affected targets of these layoffs, with former Bethesda project lead Jeff Gardiner reporting that 35 staff at Bethesda Game Studios are losing their jobs, while id Software is being gutted, reportedly losing 95 staff members. On top of that, ZeniMax-owned studio Arkane is in the process of "beginning required consultation with its Works Council to review potential strategic options," while Ninja Theory, Undead Labs, Double Fine, and Compulsion Games have broken off from Xbox during this latest restructuring, with the latter two going independent. The layoffs at id Software are a major surprise, as they come alongside reports that Bethesda is set to change focus to its biggest franchises, which reportedly features Doom and Quake – two franchises primarily developed by id Software – alongside the expected push for The Elder Scrolls 6 and Fallout 5. While these were first reported by Bloomberg, an internal email from Braff acquired by IGN seems to back this up. "These shifts also reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation." Braff says, adding: "To be successful in the future, we need to change course. We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players." She continues, "To best position Bethesda for future growth, we are shifting from a planning model primarily centered on what's next for each independent studio to one that focuses on our strongest franchises." Braff adds, "By working more closely across the organization, sharing expertise and capabilities, and focusing our investments on the opportunities with the greatest potential, we believe we can better support our franchises and IP with meaningful long-term potential." Of course, one wonders why Microsoft took this long to shift Bethesda's focus and work on getting the next Fallout and Elder Scrolls games out as soon as possible. However, with a significant portion of the talent at id Software affected – which reportedly is focused on the coders working on the id Tech engine – it feels almost antithetical to the studio's plan to focus on its first-person shooter franchises, and evidence of the poor planning from Xbox management that has led us to this point. [/url]

Jul 7, 2026 - 19:24

Bethesda boss says the company must focus on its "strongest franchises" as Xbox layoffs reportedly hit The Elder Scrolls and Fallout makers hard

As Bethesda is reportedly hit hard with layoffs from Microsoft, president Jill Braff has apparently told staff of the plan to focus on the company's strongest franchises going forward.

This week, Xbox announced its fifth wave of layoffs since purchasing Activision Blizzard, with this ongoing wave set to see 3,200 staff laid off over the next year. From the sounds of things, Bethesda is going to be one of the most affected targets of these layoffs, with former Bethesda project lead Jeff Gardiner reporting that 35 staff at Bethesda Game Studios are losing their jobs, while id Software is being gutted, reportedly losing 95 staff members.

On top of that, ZeniMax-owned studio Arkane is in the process of "beginning required consultation with its Works Council to review potential strategic options," while Ninja Theory, Undead Labs, Double Fine, and Compulsion Games have broken off from Xbox during this latest restructuring, with the latter two going independent.

The layoffs at id Software are a major surprise, as they come alongside reports that Bethesda is set to change focus to its biggest franchises, which reportedly features Doom and Quake – two franchises primarily developed by id Software – alongside the expected push for The Elder Scrolls 6 and Fallout 5. While these were first reported by Bloomberg, an internal email from Braff acquired by IGN seems to back this up.

"These shifts also reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation." Braff says, adding: "To be successful in the future, we need to change course. We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players."

She continues, "To best position Bethesda for future growth, we are shifting from a planning model primarily centered on what's next for each independent studio to one that focuses on our strongest franchises." Braff adds, "By working more closely across the organization, sharing expertise and capabilities, and focusing our investments on the opportunities with the greatest potential, we believe we can better support our franchises and IP with meaningful long-term potential."

Of course, one wonders why Microsoft took this long to shift Bethesda's focus and work on getting the next Fallout and Elder Scrolls games out as soon as possible. However, with a significant portion of the talent at id Software affected – which reportedly is focused on the coders working on the id Tech engine – it feels almost antithetical to the studio's plan to focus on its first-person shooter franchises, and evidence of the poor planning from Xbox management that has led us to this point.

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