ESO loses its entire leadership team in Xbox layoffs, new leads named

ZeniMax Online Studios has lost its top four leaders in Microsoft's latest round of Xbox layoffs. Studio head Jo Burba, executive producer Susan Kath, game director Rich Lambert, and production director Ala Diaz are all out — confirmed via an internal memo shared with staff on July 15 and reported by Game File.

Burba had been with ZeniMax Online for 14 years and was only promoted to studio head last July, following the previous round of deep cuts that also saw the cancellation of Project Blackbird, a sci-fi shooter MMO. All four departing leaders will stay on for the next few months to help transition to incoming game lead Nick Giacomini and business operations lead Josh Henderson. In a memo to staff, Burba wrote: "We have tremendous confidence in Josh and Nick, the future of this studio, and the continued growth of ESO." The studio also confirmed it is still working toward Update 51 and beyond.

The scale of the damage at ZeniMax Online is significant. Of the 379 total layoffs recorded in a WARN Act filing for Maryland — where both ZeniMax Online Studios and ZeniMax Media are based — 213 came from ZeniMax Online alone, with the remaining 166 from ZeniMax Media, which includes Bethesda Game Studios. PC Gamer estimates the studio has lost at least 40% of its workforce since late 2024, when headcount stood at roughly 461. ESO launched in 2014 and has been one of the most consistently supported live-service MMOs in the genre, but the loss of this much institutional knowledge — Burba alone had over a decade on the project — raises real questions about its trajectory. Senior encounter designer Morgan Goin told the BBC bluntly that the team won't be able to produce content at anywhere near its previous pace.

Community manager Kevin Gbolie said the plan is still to deliver great content and promised an update soon, but the mood inside the studio is reportedly grim. Microsoft has also signaled that another 1,600 Xbox layoffs are expected by July 2027, meaning this may not be the last disruption ESO's team faces.