Xbox's latest round of layoffs has claimed another layer of ZeniMax Online Studios leadership, with studio head Jo Burba, executive producer Susan Kath, studio game director Rich Lambert, and production director Ala Diaz among those exiting as part of the broader cuts affecting 379 positions across the Maryland operations. Burba, who stepped into the top role last July following the prior wave of Microsoft reductions, departs after 14 years with the studio. The outgoing team informed staff that a transition to new leadership under Josh Henderson and Nick Giacomini is underway over the coming months, with the group remaining in place briefly to facilitate the handoff.

A Maryland WARN notice confirms the scale of the ZeniMax Online reductions, totaling 213 jobs at the Elder Scrolls Online studio alone. Senior encounter designer Morgan Goin, also affected in the cuts, noted in a BBC interview that the team will no longer be able to deliver content at previous speeds. The studio's public statement following the layoffs indicated a need to evaluate and update schedules accordingly.

This follows the 2025 cancellation of an unannounced MMO project previously led by founder Matt Firor, who described the decision as treating staff as "a number on a ledger." The outgoing leaders expressed "tremendous confidence" in the studio's future and continued growth of ESO in their notice to staff.